Can I use my Tax Refund to live prior to filing?

[LostNFound]

Well, as if my life isn't complicated enough...I just found out that I will have my right arm in a cast (shoulder to knuckles) which will prevent me from doing my job for 6 weeks in addition to a few weeks of therapy.

My husband and I were about ready to file BK, but now I want to hold off a couple of months until we get through yet another bump in the road.

My question is this: Can we use our tax refund for our living expenses 2 months prior to filing?

We were told that our refund could be spent on exemptions (food, gas, shelter) and that we would still lose whatever is left to the trustee. We are getting about 10K. So, I'm wondering if the trustee will frown on this? Can we live on that until we file (assuming that we will be ready to file by June 1)? Will this medical expense and lack of employment be a bad thing? Furthermore, it will change my income for the previous 6 months.

[Meatstick]

Lost, we also got a very large refund that was actually more than yours. We spent it down on what you listed plus braces for one of the kids, tuition balance, vehicle repairs and so on. We did so after consulting our attorney who advised us to be current on all utilities, car payment and house payment even though we arent reaffirming as we plan to do a ride-thru on both. I think you will be just fine but if you have specifics ask your lawyer to be sure.

Lack of employment and medical expenses aren't going to hurt you and may even help your case fall further under the radar.

Good luck.

[BnkrptcyLwyr]

A Trustee will generally ask what you used your refund on. In your situation, it is ok to use the refund to live off of. Avoid using it to pay back creditors or family members.