Tax Return

[hopelesslyindeb]

Well finally went to bankruptcy attorney to file Chapter 7 But he said tha is not possible because still have a couple hundred dollars disposable income.

So it will be a Chapter 13

My question here is Im using income tax refund for filing we will sign the papers this week. Do we get to keep remainder of the refund I forgot to ask.. Thanks in advance

[LadyInTheRed]

In a Chapter 13 you can keep all of your assets. If on the day you file you have non-exempt assets, including cash left over from your refund, the amount your unsecured creditors receive during your plan must be at least equal to the value of your non-exempt assets.

[hopelesslyindeb]

So as long as the creditors are getting more than what I have left over from refund I can keep it ?

[LadyInTheRed]

Yes, as long as unsecured creditors are getting more. But, if you can exempt the refund, you can keep it no matter how much the unsecured creditors get. It looks like Masschusettes has pretty generous exemptions.

[hopelesslyindeb]

Ok Thank You Much... Bill

[nsupanda]

I filed my chapter 13 last year around the same time I got my tax refund. My attorney advised me to go ahead and spend the refund but only on things like repairs for the house, new tires for my car, etc... and keep a receipt of EVERYTHING. This was MY attorney's advice though, you should really ask your attorney what he/she wants you to do with it.

[hopelesslyindeb]

Well when we spoke with him he asked how much the return was and how much was left after paying him.

He wrote down the amount ,but didnt say we should not spend it.