Can I Use My Tax Refund To File Bankruptcy?
I am frequently asked whether or not you have to surrender your tax refund if you file for bankruptcy. While that topic is addressed in a different post, the popular and appropriate follow-up question is what to do with the refund once it is received. Though you have to be careful if you spend large amounts of money prior to filing bankruptcy (you don't want to give out a gift or pay back a family member or friend), the court understands that you have to pay an attorney to file your bankruptcy. So yes, you can spend your refund money on an attorney to help you file your case. In fact, since most bankruptcy filers have a hard time coming up with attorney fees, using the tax refund money is one of the most common ways to pay for a bankruptcy. Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.