A lawyer told me.

[TJR70]

I a lawyer told me to file for my income tax return and then file for a bankruptcy and put received on the bankruptcy documents. Would this ring bells with the trustee if its a week or 2 before filing for BK?

[Mi Bankruptcy]

If you are getting a large amount back you will most likely have to account for where the refund went. If it's large spend it on things such as new tires, home improvements, food Keep receipts for your purchases ( Incase they ask)..Don't pay any bills or family or friends if you owe them money.

[Regrets]

Can I spend it to catch up on my mortgage????

[BnkrptcyLwyr]

If the tax refund will keep you afloat a while, then why not just wait to file ... use the money for necessities, utilities, mortgage, etc. Forget the credit cards and suffer the calls ... who cares ... as a matter of fact, DO NOT use the tax returns to make credit card payments at all ... you know they're likely to get screwed anyways. When the money is spent, then file.

[BnkrptcyLwyr]

Also, your exemptions depend on your state ... if you can use the federal exemptions it will more than likely (in my experience) be possible to fully exempt the tax refunds anyways ... so you may not need to wait at all.

If you can only use your state exemptions ... then you may not be able to exempt them ... in which case, waiting to file would be the most prudent move.

Exemption planning is very much important.

[Regrets]

The tax refund will only be enough to catch us up on the mortgage, and I am pretty close to being sued I think.

[Regrets]

I am in California, and the only thing I have is a car worth less than I owe, and the house I am upside down in by about $40,000 according to Zillow.

[BnkrptcyLwyr]

If you intend on keeping the house, then catching up on the mortgage is fine.

And don't necessarily worry about being sued ... it will still take them MANY MONTHS before they get to any sort of collection stage, and you will then file, which will cut that off.

[Regrets]

thanks!! Sorry if I hijacked!!