refund check do i report it?

[dovette7]

Hi to all,
Have not been here in awhile. So far so good in out Ch 13. We are in our 10th month of the plan and making it. Found out our attorney is no longer with the firm so another attorney has taken on our case. There were objections to claims that were left in limbo etc, so hopefully the new attorney will be on top of it.

I surrendered the house in the bankruptcy and I have no idea if it's been auctioned or not. But my homeowners insurance cnx b/c the house is vacant and sent us a refund check for $700. Do I have to report this since it is not income?

Thanks!

[Granny]

What is your trustee's policy on tax refunds, that'll give you a clue as to what you should do. I received a house ins refund check right after I filed, for $300.00 and I didn't tell anybody. I had replaced my home owner's ins with a less expensive policy and my refund was for the portion of the year that we hadn't used. Chase sent me a letter saying that if I got a check to send it to them, but I didn't because when they have received all the payments from the trustee, they will owe me money for the extra escrow that they are collecting.

[magyar123]

Could be a tricky issue if the court's investigators still snoop/spy into your finances.

[dovette7]

I actually have the trustee that NO ONE wants in my area. They want any and all tax returns for the first 3 years. And of course any change in income. I just don't want to keep that money which I could really use right now, and then it be the wrong thing. I just didn't know since it was a refund of something that I had paid last year, if that would need to be reported.... since it's not income. But I guess, any money received is supposed to be reported?

[wooisme]

Dovette.....where are you from? just curious. is there something in writing that says you have to turn in tax returns or report income changes?

I had something similar happen to me just last week. my husband gets a bonus this time every year, this year being the last for it. anyway, what we did so we could keep it is we paid in to keep it, every month it was added in the plan for us to pay a certain amount so that in dec we could keep the check....the check came and it was $600 over what we paid in, so i asked the lawyer if we should send it to the trustee , keep it, hold on to it or what. he won't answer me! so i'm putting this aside for now. if your trustee is that hardnosed then I don't think i would keep it

[lrprn]

I just don't want to keep that money which I could really use right now, and then it be the wrong thing.

Ask your lawyer. He/she is going to be the best resource to know whether this money is ok to keep or not. (Hope you get to keep it!)

[Dealer36]

I would think you could keep it but i'm not a lawyer. If it is something you paid and got back as a refund could it be considered income? Just like if you put up a deposit and got it back it shouldn't be considered income. All you are doing is getting back money you paid right?

[dovette7]

Yes, its a refund of home owner's insurance. I understand if it was a bonus, that it could've been calculated as income. But I called my attorney and am waiting on his response.

From what I understood about my case, if we make more money we have to report it, and all tax returns for the first 3 out of 5 years goes to trustee. That is stated in my plan. We are paying 80% to unsecureds. At 100%, we wouldn't be obligated to do so.

I'll keep you posted as to what I find out.

[wooisme]

what state, what district are you from. yeah let us know because i can tell you my lawyer never ever got back to me about our overage and i don't know if i can keep the extra money or not from the bonus. and he knows about this, he asked how much over and when i told him he never got back and it's over 7 days now. meaning keep it but don't say i told you to keep it.

[dovette7]

Just got word from attorney that I can keep the insurance refund check. She said my exemption would cover it. However if my husband makes any more money or gets a Christmas bonus, etc... I must report that and the trustee would decide to take it or not.

so good news for me right at Christmas! Needed some good news today.