The incomprehensible part of this post's title comes from a poem by Scottish poet Robert Burns. It is the end of a familiar expression, "The best-laid plans of mice and men often go awry," which Burns coined in a poem in 1785. English majors are eternally grateful to the person who translated the poem from the original Scots. Like "Beowulf" and "The Canterbury Tales," the old language is remarkable for scholars but off-putting for the rest of us.
It is a little frustrating that many of the events that lead up to the decision to file for bankruptcy are out of our control. How, for example, could the average homebuyer have guessed home values would drop so significantly after so many years of steady gains? Nevertheless, it happened, and homeowners were left to clean up someone else's mess.
We are continuing our discussion of tax refunds and Chapter 7 bankruptcy. As we said in our last post, a debtor in Chapter 7 bankruptcy liquidates all assets that do not qualify for state or federal exemptions, and those assets become part of the debtor's bankruptcy estate. The trustee then pays creditors from that estate.
If you have declared Chapter 7 bankruptcy, that tax refund may not be yours. The fate of your tax return actually depends on when you file for bankruptcy and when you receive your refund.