For the previous three weeks, we have been talking about tax refunds, how you could be required to pay those refunds to the bankruptcy trustee, and possible ways to avoid having to pay. One of the options was to delay filing your bankruptcy case until you receive your refund. However, if you do elect to wait, what do you do with the refund when you receive it? There are good ways to spend the money, but there are also very unfortunate things you might do. In short, there are no hard and fast rules about how you should spend your tax refund. Your options depend upon your individual circumstances, and you should talk to your attorney.
