Solomita Law, PLLC
Solomita Law, PLLC
  • 12001 Research Parkway
    Suite 236
    Orlando, FL 32826
  • Get a Fresh Start. Call

    (407) 305-5599

Navigating Tax Exemptions And Bankruptcy Law Cases

Navigating Tax Exemptions And Bankruptcy Law CasesRead this article if you:

  • Want to know if a tax exemption is in jeopardy because of bankruptcy.
  • Are considering filing for bankruptcy.
  • How our practice can help you even with a simple consultation.

Are Tax Refunds Exempt When Filing Chapter 7 Or 13 Bankruptcy?

The answer to this question varies from state to state, so we will answer with bankruptcy law in Florida in mind.

In Florida, there is no specific tax refund bankruptcy exemption. If you receive earned income credit on your tax refund, that portion of your refund will always be exempt. You will never have to worry about the court being able to take that portion.

Beyond this, it depends on when you file your case. For those filing bankruptcy law cases late in the year or early the following year, authorities will look at the tax return submitted in the current year.

Whatever is not an earned income credit will be subject to the bankruptcy trust. It will be the bankruptcy estate’s money unless you have an exemption space that you can utilize to exempt the tax refund. Some people who file for chapter 7 or 13 bankruptcy have exemption space that enables them to protect it. In contrast, others do not and cannot as a result. This tends to be because they are a homeowner – homeowners do not receive additional exemptions much at all.

Do You Have Any Other Advice Or Forecasts Heading Into 2023?

Many people want to start a bankruptcy law case and are waiting for something to happen before they do, whether a tax refund or something specific to their situation. Some of these people will find out someday that they waited too long and need to file for chapter 13 rather than 7. If chapter 13 is the bankruptcy that best suits your needs, there is nothing wrong with it, but some people get trapped in it and never recover financially.

So my advice is to consult with an attorney. It will likely cost you nothing but the time you dedicate to it. If it is not something you wish to proceed with, you can leave it at that. But if you find it to be of great assistance to you, which it likely will be, you have started the journey to recovery sooner than you would have otherwise.

Anyone who calls our office will receive a full consultation with an honest analysis of every aspect of their case. We tell them what we think about filing immediately or after some time.

With the guidance of a skilled attorney for Bankruptcy Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Bankruptcy Law in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.


Alec Solomita, Esq.

Get a Fresh Start. Call
(407) 305-5599

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