Am I going to lose my tax return when I file for bankruptcy? Unfortunately it could happen. The reason is that when you go into bankruptcy, your tax return has to be considered an asset of the estate, whether you’ve received it or are entitled to it in the future. It all depends on when you file for your case. If you file your case right before you file, there’s a good chance that you’ll lose your tax refund. If you file for Chapter 13, there are some things we can do to show that you’ll need this money for the rest of the year. Tax refunds are a big issue in bankruptcy court, and whether you’ll lose that money depends largely on the circumstances surrounding your case. Watch the video for more information.