Knoxville Bankruptcy Attorneys Clark and Washington Explain Which is Better: Filing Your Taxes Before or After Filing for Bankruptcy

    KNOXVILLE, TN, April 23, 2015 /24-7PressRelease/ -- Some states consider tax refunds as an exempt asset, thus preventing a bankruptcy trustee from using it to pay off a debtor's creditors during a bankruptcy procedure. In this case, it does not matter whether you file for bankruptcy before or after you file your taxes as any tax refund you are entitled to will be exempt from the bankruptcy court ruling. However, if your state does not give you this protection, there are still ways to keep your tax refund, according to the seasoned Chattanooga bankruptcy lawyers at Clark & Washington.

One way is to simply delay filing for bankruptcy until after you have received and spent your tax refund. Keep in mind, however, that if you use your tax refund to buy an asset (like a car, for example), this asset may not be exempt from seizure when you do file for bankruptcy. The best way to protect your tax refund is to spend it on regular living expenses such as food, gas, rent, etc.

Another way to keep your tax refund is to apply for a wildcard exemption. This is an exemption that you can apply to almost any personal property that would otherwise not qualify for exemption under a bankruptcy filing. If your state allows it, you can use your wildcard exemption to protect your tax refund so you can keep it even when you file for bankruptcy.

Filing for bankruptcy in Chattanooga can be a tedious and confusing experience. The bankruptcy experts at Clark & Washington are experienced and knowledgeable professionals who can assist you every step of the way during your bankruptcy filing. Call for an appointment today and get your financial life back on track.

To learn more about their services, go to http://knoxville-bankruptcy.com/.

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://knoxville-bankruptcy.com/.

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