Timothy J. Sierra, Attorney at Law Trusted Florida Bankruptcy Attorney Since 1987
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TAX REFUND AND BANKRUPTCY

If you are contemplating filing for bankruptcy relief the last or first quarter of the year, beware. The chapter 7 trustee will be looking to take your tax refund.

For chapter 7 filers, if your case is filed in the fourth quarter of a calendar year or any time before you receive your refund, you may be required to turn over a portion of a tax refund you may receive. Your bankruptcy estate includes a tax refund earned up to the date of filing of your bankruptcy petition. Even if you have not filed your return, if you are entitled to a refund on the date of filing, the entitlement and right to the funds belongs to the trustee.  Florida Law protects the portion of a tax refund awarded for earned income credit and would not have to be turned over to the trustee.

The best strategy is to file a bankruptcy petition after you receive your tax refund and after you spend the refund. The refund should be spent on reasonable and necessary expenses, such as payment of real estate taxes or homeowners insurance, non cosmetic medical needs, household repairs and upkeep, even payment of your bankruptcy attorney's fees and costs. It should not be used to pay any creditors, including family members, as you could be creating a preference. Always consult with your bankruptcy attorney before spending the money to make sure you are not creating more problems.

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  • "When I first came to the decision to file for bankruptcy, I had no idea where to start. I began researching attorneys on the internet and came across the information for Tim Sierra. Since he specialized in bankruptcy and had a lot of experience......"
  • The process of going through bankruptcy could be very overwhelming but Tim made me feel at ease and I felt that my needs were being taken care of. I truly feel that he had my best interests in mind and the lines of communication were always open....
  • "I had to file a Chapter 7 bankruptcy. I didn't know anyone who could refer someone so I took a chance and just looked on the Internet. I don't remember exactly why I chose Mr. Sierra, but I am glad I did..."
  • He was honest, straightforward, and hard-working. In my case I ended up with some extenuating circumstances and he handled the matter professionally even though I'm sure the work probably exceeded what he originally felt it would be....
  • I don't ever write reviews, and I had no prior relationship with Mr. Sierra. This review is simply being written as a service to others that Mr. Sierra is an excellent attorney and should be considered for your needs if you need one....
  • "I'm very happy to have been referred to Tim for my Chapter 7 filing. He was knowledgeable in his field and very responsive in replying to any questions or concerns I had. Tim was also very accommodating with meeting times..."
  • " I recently was in need of Mr. Sierra's services and I found him to be very understanding and helpful in my particular circumstance. He met with me and explained everything in full detail and also answered every question that I had....."
  • " I recommend Timothy Sierra a loyal and dependable lawyer. When you talk to him you feel that you are with a friend or a member of your family. Timothy is able to lead you in every step of the process. Good job Timothy."
  • " Bankruptcy is a private and personally devastating life event. Timothy Sierra and his assistant, Nancy, made the process as painless as possible. They kept in close contact via phone and email so I always knew what was happening in my case...."
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Riverview, FL 33578

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Fax: 813-258-4746
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305 North Parsons Avenue
Brandon, FL 33510

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions