341 meeting continued

[renefaye]

Trustee states I need to hand over my income tax refund. I don't have it. He continued the bankruptcy for another month. What happens now?

[chicagoannie]

Trustee states I need to hand over my income tax refund. I don't have it. He continued the bankruptcy for another month. What happens now?

You have not received your refund....or you got it and spent it? Did you file Ch 7 (asset case? or no assets?) or Ch 13? What date did you file your tax return and what date did your BK get filed?

If you spent it, make sure you have receipts for everything you purchased. Hopefully they are absolute necessities....did you file pro se? Or if you used an attorney, they did not tell you not to spend your refund?

[renefaye]

I filed Chapter 7 pro se on the 8th of Feb. I overlooked Schedule B #21 about the refund amount. I (we, as it's joint with my husband, but individual bankruptcy) filed taxes on Jan 29th 2011. Do I need to amend the Schedule? The trustee wasn't upset and continued the meeting for another month to see what I could do. We thought it was exempt, as this is a no asset case. Is the refund an asset or is it included in the gross wages? I am totally confused and upset. Thank you.

[free2breathe]

renefaye, did you already receive the refund and spend it?

[justbroke]

If you received a refund or are entitled to a refund, amend your Schedule B and exempt it on Schedule C if you have exemptions left! This is probably why the 341 Meeting was continued. There's no reason to "continue" a 341 Meeting if the Trustee is just changing it into an asset case.

From my cursory glance at Wyoming exemptions, there isn't anything really to protect a tax refund. Please double check for yourself. If there is an exemption, you need to exempt it on Schedule C. Regardless of the exemption, the tax refund (or "anticipated" tax refund) needs to be listed on Schedule B. If you have already spent this tax refund and you had received it after filing, then you have some issues. From what you wrote, this is indeed what happened. You filed your taxes, then filed bankruptcy, then received the tax refund before the 341 Meeting (and before discharge). This makes it property of the bankruptcy estate. You are going to need to make a plan to pay this back to the Trustee. I hope it wasn't a really large amount.

Looks like you have homework!

In your other two threads on the same topic, you ask about whether you need to amending schedule b and whether your tax refund is exempt. First, your State has paltry exemption so you're probably not going to exempt it. You need to amend Schedule B because the refund was property of the estate. Additionally, you are now an asset case.

341 Meeting Continued

Amend schedule b

Is my tax refund exempt

[renefaye]

Yes.....that is what happened. I don't have a problem paying it back.....due to my ignorance, I didn't list it to begin with. (it is joint with my husband; the chapter 7 is individual) Will the trustee go for like a couple of payments? Will I get something in the mail? I am sad.

[renefaye]

Yes. due to my ignorance, I thought it would be "exempt" as well, as it started out as "no asset", as everything we own is exempt. sighs.........

[justbroke]

Actually, you just provided more information and what you wrote earlier (that the Trustee said you have to pay "part" of it back) let's me now tell you this. The Estate is only entitled to half (50%) of the refund since your spouse didn't file. I can't tell you exactly what to do -- because I don't want to be the cause of you losing money, but I might be inclined to update Schedule B to include 50% of the actual tax refund.

Please speak with your Case Manager about amending your return. Generally, it costs $26 to amend the Schedules. Also, you must update the statistical sheets as well. As to whether you just send the amended Schedule B with the "new" item only, or the entire Schedule B with the new item on it, is a procedural question that your case manager can answer.

Best of luck.

[renefaye]

I don't have a "case manager" as I did the filing pro se. I am not sure what I should do now. I don't have the money. He didn't seem to care if I had receipts or not. He didn't say when or how he wanted it paid back. I am just at odds here. Not sure if I can do this!! Worse case scenero is the case will be dismissed and if I still want to, I will have to re-file in 6 months. Boo Hiss.......

[justbroke]

Actually, you do have a case manager. Every case is assigned one. They work in the Clerk's office and assist the judge with all of the filings. They maintain the docket and scheduling. It's quite simple to call the Clerk's office and ask for your assigned case manager.

The Trustee doesn't care about receipts because you received and spent this "post-petition". Worse case is actually worse. You can't just dismiss a Chapter 7... you must be allowed to dismiss. If the Trustee objects, then you will need to find the money or lose your discharge. There is even a more serious case disposition and that is a dismissal with prejudice.

Most Trustees will allow you to setup a payment plan. These same "nicer" Trustees will allow payments over 12 months with no interest. I wish you the best of luck. You are not in a good position.