Had my 341 today in Arizona

[djinaz]

Everything went super quick, no creditors showed up. I did have a couple questions for the trustee but wasn't sure if I should ask them there or call his office. Maybe someone on here can help. My first question was related to a vehicle that we are surrendering. Wachovia asked for a relief for the automatic stay but the trustee opposed it, saying they hadn't submitted the original contract (I think that was the reason for him opposing, don't have the paperwork in front of me). That was close to a month ago and I haven't heard anything since. Was just wondering what would happen from here on out.

My other question was about our tax returns and I'm sure this is a question that can't be answered because every situation is different. We filed for Bankruptcy on 12-23-09 and our tax refund is going to be huge for this year. We have 3 dependants and also qualified for the child tax credit. The trustee did mention that he received copies of our tax returns but didn't say one way or another if we would be entitled to some, all, or nothing. If it wasn't for our dependents we would have owed both federal and state. Plus my husband took a huge pay cut when he lost his job early in 2009.

What do you think?

[nerves]

Usually the trustee will advise they want to see your tax return and advise you NOT to spend it until they review. Does your state allow you to exempt all or part of your refund? Some states do and others don't. I would ask your lawyer about the refund.

As for the vehicle, I don't believe they can do anything until they file all the correct paperwork and it is approved to release the automatic stay. Many lenders don't file due to the time it takes to file. Our attorney advised it usually takes 45 days in our state, but then again, each state may be different.

[dakota112]

djinaz I am in same situation as you. Filed in AZ last month, now I find out for first time in 20 years I have a significant fed and state refund. I guess thats how it goes. I suppose the TT will get all of it. I need to figure out what to do with the check when it comes; do I sign it and then mail it to him or do I just mail it to him. Has anyone in AZ ever had a case where the TT let them keep part of their refund. Heck this is when we really need it to emerge from this situation especially when unemployed! Good luck

[djinaz]

I'm trying not to sound greedy because yes we are getting rid of alot of debt, on that same note however, we are giving up everything. My husband lost his job and it now making about 1/4 of what his other job was paying. In order for him to get a better job we have to move BUT have no money and will soon not have a vehicle. Vicious cycle! Anyway I'm wondering if I should just call the trustee's office and ask?!?!? I should not have been such a chicken at the 341 meeting yesterday.

I'm like you also, we have never had this big of a refund. It's all due to our kids; wish that part of our refund was exempt.

[dakota112]

My TT at the 341 was nice so I have no complaints thus far ( who knows what can happen until discharge?), but my gut instinct tells me they don't really give a hoot about you and me and are kids and are predicament. It would be nice if we could keep some of this so as to help us as there is so much stacked up against you once you file, credits, renting, cars , jobs everything that much harder to get. I'm sure more than a few people have been put out on the streets from this process. Again I suspect it doesn't prevent them from sleeping at night knowing a few folks are homeless. Our laws only help the rich and connected, they are not there to help the poor. It is a flaw in how our country was founded.

[Meatstick]

Did the TT turn you into an Asset case after your 341 ? If not and he made no mention of wanting any part of a possible refund then your probably good to go.

We are in AZ also but havent filed just yet. We received $13k Fed and State refund and our attorney said to spend it down on allowable expenses before we file or the TT would take it and decide. So we will file in either April or May and will most likely need to surrender our 2010 refund to the TT. On the advice of our attorney he specifically requested us to file, receive and spend our 2009 return before we file our Ch7.

[djinaz]

At the 341 the Trustee made a general statement to everyone in the room that they needed to file their tax returns and provide him with a copy and the paperwork said to mail the refund directly to his office. When it was our turn he just said I already got a copy of your 2009 tax returns that you mailed to the office.

We are a no asset case.

[dakota112]

When I check PACER it says NO asset still but it has only been about 10 days since my 341 and there has been no new entry made sinceabout 14 days before the 341 so I will just have to sit and wait. I just have this feeling when they see this big refund it is gone so I accept it in return for having all of this debt erased.

[Meatstick]

Dakota, I would think you will be just fine. No asset case means just that UNLESS the TT already asked for your 2009 Refund at your 341.

[dakota112]

This is really confusing to me. Why would the TT say he wants your 2009 tax returns mailed to him when available yet not want the refund if prior to the 341 you were a no asset case? I can't imagine he won't ask for this check to be mailed to him especially if he derives a percentage of it. Granted it is the first time in 20 years I got a refund and he may have thought I owed money but can't he change his mind after the 341 and make it an Asset Case? Well in my mind I've written it off anyways. I'm grateful I'm in the 60 day club.

[santro]

We filed in AZ on 1/25/10 and have our 341 this coming Monday 3/1/10 at 9 am(nervous). In the letter we received from the trustee requestiong pay stubs, bank stmnts etc..it also stated that he would be taking our 2009 refund if we hadnt filed our taxes prior to filing the BK. So in our case it is pretty clear that if and when we get a refund that we forward the checks(s) to him.

[djinaz]

UPDATE: We got a letter from our trustee one day after our 341 meeting stating he reviewed our tax returns and we have to turn over both federal and state......a total of $9,000.00.

[Meatstick]

Well that sucks djinaz. Its too bad someone couldn't have advised you better so you could have maybe waited until you had filed, received and spent down your tax returns. Look at it this way though, You will probably get to keep 2010 and beyond and even though $9k is quite a large sum discharging all your debt will dwarf that amount.

Good luck !

[dakota112]

the way I see it giving them the refund is the price to pay 2 cents on the dollar to write off this debt. Downside is when they take your state refund, you will have to pay income tax on that amount for 2010. Kind of a double hit