The later we get into the Fall, the more we have worked and the more of our 2014 tax refunds we have earned. When we file bankruptcy, we list out and exempt our property. Important assets like home, car, furniture, retirement etc. are exempt. We can claim $1,000 per working person of tax refunds exempt plus we can use your wild card up to $1,000 each.
We also pro-rate, so for most of the year tax refunds are not an issue since much have not been earned yet, so are not assets to be listed and exempted when the case is filed. Plus, you get to keep all Earned Income Credit. But if you do get big refunds, you may have non-exempt tax refunds, especially for those who file bankruptcy after about September 1st.
Feel free to email copies of your 2013 Fed and IA 1040's to Jeff for estimates of how much of your tax refunds you are likely to keep if you file bankruptcy in the fall or winter.
Beware- Creditors often sue and garnish late in the year. That way you either wait on bankruptcy to protect your refunds or you go ahead and file bankruptcy to stop the garnishment and they end up getting some of your refunds, a win/win for them.