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Phone: 410-484-9000
Drescher & Associates, P.A.
Bankruptcy and Creditor's Lawyer
Serving Maryland, Delaware, Virginia, and Pennsylvania

Baltimore Bankruptcy Lawyer Serving Debtors and Creditors in Maryland, Delaware, Pennsylvania, and Virginia

Spotlight Bankruptcy Issue: What happens to my tax refund in bankruptcy?

Beginning very late in the year and through April or May, bankruptcy trustees always ask debtors if they’re expecting a tax refund. This is because the refund is considered an asset in the bankruptcy that a trustee can keep and use to pay creditors.

If it turns out that you are expecting a tax refund, the trustee will look to see if you have room in your allowed exemptions so you can keep that money. If you do have room, the trustee will probably leave you alone. However, if you are bumping up or over your exemption limit, you should expect the trustee to demand that you turn over the tax refund when you get it. If you’re not sure that you’re going to get a refund or if you’ll owe, the trustee will keep your case open until you’ve filed your tax return. Since you really want to get in and out of bankruptcy as soon as possible, you should probably file your return earlier rather than later.

This is where bankruptcy planning can help. If you’re expecting a refund you may be better off filing your return early, receiving your refund, spending down the money and then filing the bankruptcy.

In chapter 13 you should expect that the trustee will want you to pay over your refund every year during the life of your plan. This is because a tax refund is really additional disposable income that under the Bankruptcy Code should be paid to your creditors. Since many people come to rely on that once a year cash bonus after filing their taxes, you may instead increase your monthly payment to the trustee in Chapter 13 and then have the right to keep your refund. 


Regardless of the state of the economy, owing or being owed money can cause stress and fear. Both individuals and businesses face financial challenges on a daily basis throughout the country, and many feel helpless against their debts.


At Drescher & Associates, Maryland bankruptcy lawyer Ron Drescher is committed to helping debtors and creditors alike find meaningful and lasting solutions to financial trouble. While it can be difficult to see beyond the pressing issues at hand, Mr. Drescher is dedicated to focusing on clients’ true priorities in order to begin building a more stable financial future.

Our Practice Areas

With offices in both Baltimore and Wilmington, Drescher & Associates serve a broad range of clients throughout Maryland, Delaware, Pennsylvania, and Virginia in matters of:



A Maryland and Delaware Bankruptcy Lawyer for Individuals and Businesses

For an individual or business facing bankruptcy, it is easy to feel as though things are spinning out of control. Fear of losing a home, car, or personal business can be overwhelming, and the resulting panic takes a large toll on everyone involved. Although making an honest assessment of one’s financial state can be initially intimidating, it can be the foundation of a stronger beginning following bankruptcy.

'Drescher & Associates has years of experience helping individuals and businesses through Chapters 7, 11, and 13 bankruptcies. In these cases, time is of the essence: the earlier legal assistance is sought, the sooner the client can begin to take control of the situation and move forward.


Virginia and Maryland Creditors’ Rights

On the other side of the debt equation, financial institutions are also negatively affected by delinquent loans. Creditors retain certain rights with respect to their claim against borrowers, and the same holds true when a borrower or debtor files for bankruptcy.

Ron Drescher’s creative and intelligent approach to motivating and incentivizing debtors has proven successful time and time again, and achieved timely results. The answers to complex debt problems do not usually lie in drawn-out litigation. In fact, by thinking outside the box and using a proven, hands-on approach with his clients, Mr. Drescher has achieved timely and efficient results for over twenty-five years.


Making the Decision to Hire a Bankruptcy Attorney

Whether you are an individual considering bankruptcy or a business stuck in commercial litigation, the realization that money may be gone can be a very personal matter. If you represent a financial institution with a delinquent creditor or borrower in bankruptcy, your own business is at risk.

Regardless of which side of debt you fall on, the decision to hire a bankruptcy or creditors’ rights lawyer is time-sensitive. Do not wait until the problem has bloated to an unmanageable level. Signs have probably pointed to worsening situation for some time. The earlier you seek legal help, the more options may be available to reach a solution you can live with.

Ron Drescher’s twenty-five years of experience in consumer and business bankruptcy, creditors’ rights, and commercial litigation have earned him a solid reputation as an energetic and efficient attorney throughout the Baltimore area. For business clients juggling different representation in different states, Mr. Drescher’s license to practice throughout Maryland, Delaware, Virginia, and Pennsylvania can make the legal process easier and more cost-effective.

If you are facing bankruptcy or if you are a creditor with debtors in bankruptcy, do not wait to seek legal help. Call Drescher & Associates today at 410.484.9000, and take control of your financial future. 



The Baltimore bankruptcy law firm Drescher & Associates has represented individuals and businesses throughout the Baltimore area, as well as in Virginia, Delaware, and Pennsylvania. Bankruptcy attorney Ron Drescher knows that each bankruptcy case is different, and addresses clients’ individual needs to ensure that a successful solution is achieved.

Creditor's Rights

Maryland creditors’ rights lawyer Ron Drescher has over twenty-five years of experience fighting for the rights of creditors and financial institutions that face challenges collecting from debtors in bankruptcy or with delinquent payments. If you are a creditor who is owed money, contact the Maryland, Delaware, Pennsylvania, and Virginia creditors’ rights attorney Ron Drescher today.

Commercial Litigation

Businesses are often engaged in thorny legal and financial conflicts, which require a lawyer with experience in commercial and business law. Attorney Ron Drescher, of Drescher & Associates, is a Maryland commercial litigation lawyer with experience representing businesses throughout Maryland, Pennsylvania, Delaware, and Virginia.

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Ronald J. Drescher
Bankruptcy and Creditor's Lawyer Serving Maryland, Delaware, Virginia, and Pennsylvania