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What happens if I spent my tax refund

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    What happens if I spent my tax refund

    My plan says I give my refund to the trustee but spent it on non authorized things. I know that was wrong. I haven’t heard what to do with it and I had the money for 3 weeks. My lawyer keeps saying I’ll get something in the mail about it but haven’t yet.

    My questions:

    Should I tell my lawyer I spent it?
    What type of trouble can I be in for this?
    how long do you have to send the money to trustee usually? I could probably in 2 months save enough to send it.

    #2
    Originally posted by KaceeTx View Post
    My plan says I give my refund to the trustee but spent it on non authorized things.

    My questions:

    1. Should I tell my lawyer I spent it?
    2. What type of trouble can I be in for this?
    3. How long do you have to send the money to trustee usually?

    I could probably in 2 months save enough to send it.
    1. Yes. That way he can properly advise you on how to get it paid to the Trustee.
    2. Typically none so long as you correct the mistake.
    3. Depends upon your district and the trustee. In mine, when this happens I advise making up the payment over a two or three month period by paying more than the normal Plan payment. Ask your attorney how you should handle this in your district.

    Please do not lose sleep over this. There are ways of dealing with the issue. Going forward, just make sure you comply with the turnover requirement so that this does not happen again.

    Des.

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