What happens to my tax refunds in a Hawaii Bankruptcy?

It depends whether you are filing chapter 7 or chapter 13.

If you receive your tax refund after filing chapter 13 bankruptcy, it has to be payed to the bankruptcy trustee unless it can be exempted and minus any earned income or child tax credit It is also subject to setoff, recoupment or otherwise provided for by your plan.

If you are filing chapter 7, your tax refund must be listed as an asset to the extent that it is earned and claimed as exempt if permitted under your state or federal exemptions. Any non exempt refunds through petition date will have to go to the chapter 7 trustee (minus any earned income or child tax credit ,setoff or recoupment).

This is a general breakdown and the rules are complicated. The best thing you can do is to get advice from a bankruptcy attorney as each case is unique.

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