Keep tax refund in bankruptcy?

Any asset owned must be listed when a person files bankruptcy. This includes rights to receive a tax refund. Will a person filing bankruptcy lose it? No one can answer that question without knowing many other facts .

The threshold question first has nothing to do with a refund, but rather where a person has lived in the 2 years before filing bankruptcy. If a person has lived in one state OVER 2 years then that states laws will govern the exemptions available to a person filing bankruptcy. Some states have their own exemption laws  and some allow you to choose , like here in Washington, between the Federal or the State exemptions.

If a person does not own any homestead or claim such an exemption here in Washington, then possibly up to $12,725 for a single person or up to $25,450 for a couple may possibly be exempted which is most likely more than any such tax refund! But equity in other assets could possibly affect those amounts. Most persons filing here in Washington without owning any real estate or having any equity in such real estate most likely would keep their tax refund if not received by the time they file a bankruptcy chapter 7 petition. As a result, if you cannot afford to await such receipt, speak to an attorney now to discuss what are the advantages and disadvantages of filing now so you can proceed knowing the results of whether or not you will keep your 2014 or prior year tax refunds!