Using Income tax refund for Atty fee?

[Brisco444]

I am new posting to the forum, but have been lurking six months. My husband and I found and retained a bankruptcy atty at that time, though we still owe him $1100 to file. We ceased paying our considerable CC debt at the atty's recommendation at the time of retainer. We had accrued a large amount of debt through intemperate spending (I was undiagnosed bipolar at the time), a failed business venture, and emergency medical and car repairs.

Well, we submitted our tax return on Friday, and we are receiving exactly enough to pay the atty the remainder of the filing fee. Is this considered preferential payment? The guidelines are a bit overwhelming for me, as I also have 2 special needs daughters on SSI and have to keep the financial guidelines for account balances in mind for that as well.

Any help will be greatly appreciated.

~~Denise

[cj0203]

I'm pretty sure that paying your attorney is a perfectly acceptable use of your tax refund. I'm going to have to use some of mine for our fees and someone here told me it should be just fine.

[Brisco444]

Whew! Thanks. So many things to figure out. But it is such a blessing to have the money coming in. We have had one emergency after another preventing us from getting the entire amt together. I am relieved to have the end in sight and be able to start over.

[FreshLikeADaisy]

Denise, ditto to CJ. Many people pay their attys with their tax return -- it's part of why waiting to file bk until after you have your tax return in hand is such a good idea.

Good luck!!!

[Brisco444]

Thank you!