Expert: Terry Leeders - 2/12/2008

Question
My husband and I have been planning to declare bankruptcy this year using our tax refund. Recently a creditor took us to court and the judge said that our tax refund has to go to the creditor and if we do anything else with it he'll consider it contemp of court. Can we still use it for bankruptcy? Thanks for the advice!

Answer
I would follow the judge's orders.   Now, if you file the bankruptcy case before you file your tax refund, then you wouldn't have to turn it over.  So, speak with your bankruptcy lawyer about protecting your refund and how quickly you can get the bankruptcy case on file.