Question: I am in the situation where my only alternative to peace of mind and finances is bankruptcy. If I file my tax return before I file for bankruptcy do you still lose the return or is this collected by the trustee to go towards paying some debt off?
Answer: If you have received your tax refund before you file for bankruptcy you don’t lose your refund for the prior year. Under current rules you lose your tax refund for prior years if you haven’t received them yet, and you lose your tax refund for the year of bankruptcy.