Expert: Terry Leeders - 2/6/2009

Question
I had to file personal bankruptcy after my llc painting business went bankrupt in jan 09 while working a full time job not associated with the painting business. ALL my credit cards listed in the bankruptcy were maxed out trying to support the business. Am I entitled to a tax refund for 2008? I am married and have 2 kids under 5 years of age in Las Vegas, NV which I supported with my full time job.

Answer
You need to check with your attorney and trustee to see if the tax refund is exempt under your local exemption laws.  Each jurisdiction is different.  For instance, in Illinois, you can protect up to $4000 of the refund with the wildcard exemption in IL. In Indiana, most refunds are turned over to the trustee.