There are some advantages to filing personal bankruptcy before the end of the year. When you file personal bankruptcy the trustee will prepare and file your income tax return and keep the refund for the year of bankruptcy and any prior taxation year that you had not yet filed and received the refund for. What this means is that by filing personal bankruptcy before the end of 2011 you will only lose your 2011 income tax refund (assuming you have already filed all prior year returns). Whereas by filing personal bankruptcy in the new year you will lose two income tax refunds. You will lose your 2012 income tax refund since it is the refund associated with the year in which you filed personal bankruptcy and you will also lose your 2010 income tax refund because it relates to a prior taxation year for which you have not yet filed and received your refund for. Therefore if you are considering filing personal bankruptcy and you normally get large tax refunds it is probably in your best interest to file before the end of the year.
-Chris Welker
