Columbus Ohio Bankruptcy Lawyers, Sheppard Law Offices Co., L.P.A. BBB Business Review
Bankruptcy Attorney serving Akron, Canton, Massilin, Dover, New Philidalphia, and throughout Tuscarawas, Summit, and Stark County. 330-409-2876

Sheppard Law Offices


Canton, Ohio Bankruptcy Attorney Kenneth L. Sheppard, Jr.

 Bankruptcy attorney serving central Ohio and the Akron-Canton area and throughout Tuscarawas, Summit and Stark County , Sheppard Law Offices Co., L.P.A. BBB Business Review

FREE Debt Relief & Bankruptcy Consultation

(330) 409-2876  or  (877) 505-9455


FREE Debt Relief Consultation Call (330) 409-2876 or (877) 505-9455

Sheppard Law Offices

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Keep Tax Refund Through Ohio Bankruptcy Filing



Keep Income Tax Refund, Ohio Bankruptcy & Tax Attorney


Several concerns that should be addressed as to when the best time to file bankruptcy is, and how to handle income tax filing and income tax refunds through a bankruptcy filing with Canton, Ohio attorney Ken Sheppard, Jr. It is a common concern whether the client can keep their income tax refund when filing for bankruptcy. The If your bankruptcy is handled appropriately you will likely be able to keep some or all of your income tax refund.


One distinct advantage of having Sheppard Law Offices handle your bankruptcy filing is that in addition to handling chapter 7 and chapter 13 bankruptcies, Ken Sheppard, Jr. is a federal tax lawyer, and the office also has an in house income tax preparation service. Since we provide both Bankruptcy and Tax Services, our bankruptcy attorneys have a clear understanding of the IRS code and taxation issues that often go along with the bankruptcy process.


If you can keep your refund or not, and how much of it you can keep depends on several factors, including  whether you are filing for Chapter 7 or Chapter 13 Bankruptcy.


Use of Income Tax Refunds to Pay to File Bankruptcy at our Akron-Canton, Ohio Law Office

You are permitted to use your federal and/or state income tax refunds to pay for your Ohio bankruptcy attorney fees and court costs. Additionally, we can prepare your income taxes for you if you desire.


Income Tax Refunds and Chapter 7 Bankruptcy in Ohio

When filing for Chapter 7 Bankruptcy in Canton, Ohio there are a number of factors that will determine how much of your refund you are able to keep. The timing of the Ohio chapter 7 bankruptcy filing, when the refund is received, and availability of bankruptcy exemptions will all be taken into consideration.


Income tax refunds received prior to filing chapter 7 bankruptcy through our Canton, Ohio law office and refunds that are due for the portion of the year that has passed before filing for chapter 7 bankruptcy are considered to be part of the bankruptcy estate and may be taken by the bankruptcy trustee to pay unsecured creditors. At your free initial consultation, we will discuss whether delaying filing for bankruptcy may provide any benefit to you. If delaying is of beneficial, your Akron-Canton, Ohio bankruptcy attorney can share with you how you may spend your refund by purchasing exempt assets in order to have the income tax refund protected from the bankruptcy estate, as well as the maximum amount that you should spend on each of these exempt assets.

Ohio Exemptions to Protect Your Income Tax Refund From Bankruptcy

There are several exemptions in Ohio that may be applied to protect a portion or all of your income tax refund from being taken to pay creditors by the chapter 7 bankruptcy trustee, even if the refund has to be included as part of your bankruptcy estate. Some examples of bankruptcy exemptions in Ohio that may be applied to your income tax refund when filing for chapter 7 bankruptcy include:

Ohio Cash Exemption

Ohio Wildcard Exemption

Ohio Exemption for the Earned Income Tax Credit

Ohio Exemption for the Additional Child Tax Credit


If you have already received your refund check or are preparing to file your income taxes, we strongly suggest that you consult with a Sheppard Law bankruptcy attorney BEFORE depositing an income tax refund check or scheduling a direct deposit, as the ability to track the spending of refund monies can impact available exemptions. For this reason, it is NOT a good idea to deposit (co-mingle) your refund in your bank account with other funds.


Income Tax Refunds and Chapter 13 Bankruptcy in Ohio

When filing for a Chapter 13 Bankruptcy repayment plan, all disposable income is required to be paid into the plan, The trustee will in most cases consider income tax refunds as disposable income, and therefore the refund will be required to be included in the bankruptcy.


There are  ways that your income tax refund may be excused from the Ohio chapter 13 bankruptcy repayment plan. The plan may be written to include language that excludes your income tax refund, however in order to do this we must show a compelling reason to the trustee to accept such language. Another alternative to keep your refund from the chapter 13 bankruptcy debt repayment plan is to file a for a plan modification.


Filing a Plan Modification to Keep Income Tax Refund

A chapter 13 plan modification must be filed each year for the income tax refund that you would like to excuse from the repayment plan. While filing a plan modification does not automatically allow you to keep your income tax refund from being taken in your bankruptcy, the court will accept reasons that it considers to be unexpected and necessary. Some examples which may be accepted by the bankruptcy court include: auto repairs, appliance repair or replacement, medical, dental, and funeral expenses.


As each individual and family face different financial situations, we work with our clients to determine what means are available, and what best alternative are to keeping an income tax refund, and we work to seek your best possible overall financial outcome. This includes advising our clients as to the best time to file their bankruptcy, and if filing sooner or delaying filing bankruptcy will provide the most benefit.


Speak with a Columbus, Ohio Bankruptcy lawyer  today at (330) 409-2876 for a FREE initial debt relief consultation

Tax Relief, Debt Relief, and Bankruptcy Filing office in Canton, Ohio

Sheppard Law Offices

Canton, Ohio Office

Belden Village Tower, 200

Canton, Ohio 44718

Tel: (330) 409-2876

Columbus Ohio Office

2600 Tiller Lane, Suite A

Columbus, Ohio 43231

Tel: (614) 523-3106

Newark, Ohio Office

843 N. 21st Street, Suite 108

Newark, Ohio 43055

Tel: (740) 345-7138

Mt. Vernon, Ohio Office

11 West Gambier Street

Mt. Vernon, Ohio 43050

Tel: (740) 392-0404

We are a debt relief agency. We help people file for protection under the U.S. Bankruptcy Code.

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Sheppard Law Offices, LPA is conveniently located and serving chapter 7 and chapter 13 bankruptcy clients in Canton, Ohio. Our office is a short drive from throughout Stark, Tuscarawas, and Summit Counties. We regularly provide debt relief solutions to clients from Akron, Canton, North Canton, Massillon, Dover, New Philadelphia, Alliance, Navarre, Strasburg, Ballivor, Jackson Township, Canal Fulton, Barberton, Greenlawn, Medina, Wooster, Orrville, Dalton, Minerva, Ashland, Wadsworth, Carrollton, Dundee, Millersburg, Hartville, Doylestown, Green, Uniontown, Salem, Columbiana, Uniontown, and throughout Ohio.