BK Closed

[rhonda0503]

I checked my BK in Pacer today and the status says "Closed" eff 1/25/05. Never rec'd any letter stating that I had to turn over my income tax refunds from Trustee. I called my lawyer this afternoon and he said for me to still send him copies of my refunds and he will forward to Trustee. I asked lawyer what would happen if I didn't send him copies and he said that eventually Trustee would catch up on me and he would overturn the BK. I feel that if Trustee wanted refunds, he would have sent notice & I would think that BK would still be is discharge status, not closed. I thought that once BK is closed then all was done & overwith. Does anyone know, am I still liable to turn over refunds or are they mine? Thanks

[HHM]

Unfortunately, it doesn't work that way. "Closed" is merely an entry the BK clerk makes, but your not out of the woods until at least 12 months after discharge. You still have continuing duties, i.e. turnover tax "returns" to the trustee, keep the court informed about any change of address, etc etc.

However, when did you file BK and when did you receive your discharge?

[rhonda0503]

Filing date was 10/13/04. Dicharge was 1/17/05 and on 1/25/05 it was closed. Wouldn't we have rec'd a letter from Trustee stating to turn over refunds?

[HHM]

Normally, no. This should have been explained at the 341 Creditors Meeting. Most trustees who are on the ball, have an information form that explains your continuing duties after discharge.

[EdytaHome]

What if the trustee never said he wanted your refund at the 341 meeting and you listed it under your exemptions?

[HHM]

Hmm, what statute did you quote to exempt your Tax Refund.

Plus, I am talking about turnover your TAX RETURNS

[rhonda0503]

HHM - just another quick question, if the trustee does take our federal & state refunds, where does the money go to? There were no assets listed in our case. thanks

[HHM]

The money goes to pay your creditors based on priority and their pro rata share. In reality, the trustee keeps most of it.

[rhonda0503]

I was afraid of that!! How is the creditors priority determined? If the creditors do get some payment, will that reflect on my credit report?

[EdytaHome]

Since we had no equity in our houses and decided to surrender them, my lawyer said that we could use our wild card. We filed federal examptions. Under this wild card you could practically list everything, we listed our cars, some money in the bank account and tax refund. The lawyer said to do it that way. So, what are the chances of still having to turn the refund over?

[robivi3]

Why get money back, amend your w-4's and pay a little!