The Law Office of Scott W. Hyder is now providing specific advice and instructions on how debtors can prevent their tax refunds from being surrendered to a bankruptcy trustee.
Phoenix, AZ (PRWEB) December 22, 2011
Scott Hyder Law, an Arizona attorney, is now providing specific advice and instructions on how debtors can prevent their tax refunds from being surrendered to a bankruptcy trustee.
There have been some recent efforts by local Arizona bankruptcy lawyers to lobby the State legislature to change the types of property considered exempt when a person files for bankruptcy. The Law Office of Scott W. Hyder is now providing specific advice and instructions on how debtors can prevent their tax refunds from being surrendered to a bankruptcy trustee.
Any property that a debtor owns or is entitled to at the time of filing bankruptcy becomes property of the debtor's bankruptcy estate and is administered by the bankruptcy trustee. This includes unpaid tax refunds. Unlike many other states, Arizona does not have an exemption protecting a debtor’s tax refund, so it is important to confer with an Arizona bankruptcy lawyer prior to filing bankruptcy. Scott W. Hyder has been asked by a lobbying task force to be part of a committee of lawyers to consult with the Arizona legislature to enact a “wildcard” exemption statute to protect all or part of a tax refund.
According to local trustees here in Arizona, only that portion of a tax refund attributable to a debtor’s wages accrued prior to filing bankruptcy must be surrendered to the trustee. For example, if a debtor files bankruptcy on June 30, 2011, the debtor is technically entitled to approximately 50% of the 2011 tax refund as of such date because six out of twelve months would have lapsed prior to the date of filing. As a result, the trustee would collect 50% of the 2011 tax refund once the debtor receives it in 2012. If the debtor filed bankruptcy towards the end of 2011, the trustee would be entitled to receive much more. This is why Arizona bankruptcy lawyers such as Scott Hyder Law will start lobbying the legislature to enact an exemption law that could help exempt all or a portion of tax refunds.
If a debtor expects to receive a substantial tax refund next year, The Law Office of Scott W. Hyder now advise clients to delay bankruptcy until after receiving and spending it on reasonable expenses. Scott Hyder Law now gives specific, detailed instructions on how to do this legally. However, a bankruptcy delay may be unfeasible if an immediate filing is necessary to stop a pending foreclosure, repossession, garnishment or lawsuit. It is incumbent on all potential debtors to consult with a competent Arizona bankruptcy lawyer to determine the appropriate time to file bankruptcy.
About Scott Hyder Law
Scott W. Hyder is a seasoned Arizona lawyer specializing in bankruptcy law, foreclosure law, real estate law, trust & estate law and contracts. Contact Scott at 602.923.7370 or visit his website at: http://www.scotthyderlaw.com.