Does a tax refund anticipation loan through HR Block protect my tax refund from a bankruptcy trustee?

  • No, no, no.

    The tax refund anticipation loan is nothing more than a payday loan you take out prior to receiving your real tax refund.  If you take out an anticipation loan and then file bankruptcy the next day, you have filed before officially receiving your tax refund, and you will lose the whole thing to the bankruptcy trustee.

    Even worse, if you take out the anticipation loan, spend that money, get the rest of your refund, spend that on exempt items, and then go bankrupt, the trustee may sue you and/or the creditor the the anticipation loan you paid back when the refund actually arrived.

    So, in short, the answer is NO.

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