If I File Bankruptcy Without My Spouse, Will They Take My Entire Tax Refund?

It is certainly possible, and sometimes advisable, to file bankruptcy without one's spouse.  Many couples in this scenario want to know how the non-filing spouse will be affected by the bankruptcy, particularly as it pertains to the tax refund, which in Utah ends up being the most commonly liquidated asset in a chapter 7 bankruptcy.  Normally, the bankruptcy trustee will consider the tax refund to be a joint asset, being owned equally by each spouse.  Sometimes a trustee will prorate the refund based on W2 forms, meaning the higher earning spouse may have a larger ownership share of the tax refund.  So in most cases, if you file bankruptcy without your spouse, your spouse will be able to preserve a portion (usually half) of the tax refund.Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.