How can I protect my tax refunds when filing for bankruptcy?

Tax refunds can be protected under a Chapter 7 bankruptcy. While you can not hide your tax refund from the Bankruptcy Trustee, you will be able to claim this refund as an exemption. While the exemption is limited, generally, you will be able to keep this tax refund.

If you had filed your taxes with your spouse and you are now divorced, In Hundley, (Hundley v. March, 603 F. 3d 95) the court ruled that each debtor will receive what he or she would have received had they filed their taxes separately. Therefore, you should not assume that it would be a 50-50 split.