discharged and wondering about tax season...

[rilbrianne]

I was discharged on 11/26/07 and I know HHM posted a sticky about discharge and closing (THANK YOU HHM! MWAH!) but this is kind of a spin on the question.

I know it will close eventually and that I'm pretty free and clear as it is now that I've got the discharge. My question is this... I was afraid the trustee would take my tax refund. I exempted it where ever I could (not knowing whether it would work but hoping it would). The trustee never mentioned the tax refund at the meeting and I have NOT received a letter or anything stating that he wants me to hand them over at some point. My case is a no asset and the trustee filed the "no distribution" the day after our 341.

So, that said... do you guys think he'll try to keep it open and take my taxes or would he have said something or sent a letter if he planned on taking them??

I'm a SAHM now but would like to get a car and get a job.

[BassBoy]

If you are a no asset case, the trustee is not interested in your refund, so you shouldn't have any cause for concern about losing it.

[WantToBeDebtFre]

Congrats on your discharge, Sarah! That's great news!

[Hollyhomemaker]

If you are a no asset case, the trustee is not interested in your refund, so you shouldn't have any cause for concern about losing it.

Not true. Not true in my area and in a lot of areas. The trustees in my area and in a lot of places take everyone's tax refunds, if there is enough there to warrant it, and if you file after you get your refund they prorate it for next year's refund. My lawyer told me this and I am going to be a No Asset filer too, as well as a stay at home mom.

Ive heard of many situations where the trustee doesn't mention it at the 341, but the filer gets a letter a few months later telling the filer to notify them of when the refund comes in so they can take their portion of it.

[JollyGG]

Not true. Not true in my area and in a lot of areas. The trustees in my area and in a lot of places take everyone's tax refunds, if there is enough there to warrant it, and if you file after you get your refund they prorate it for next year's refund. My lawyer told me this and I am going to be a No Asset filer too, as well as a stay at home mom.

Ive heard of many situations where the trustee doesn't mention it at the 341, but the filer gets a letter a few months later telling the filer to notify them of when the refund comes in so they can take their portion of it.

Yes many trustee's do take tax refunds. Mine did. However, this issue would have come up before the discharge and at some point her case would have been changed to an asset case if the trustee were planning on taking her tax return.

[Hollyhomemaker]

Yes many trustee's do take tax refunds. Mine did. However, this issue would have come up before the discharge and at some point her case would have been changed to an asset case if the trustee were planning on taking her tax return.

Didnt happen to someone on another message board. She was in a no asset SAHM situation and got discharged, and then a few months later out of nowhere she got a letter saying when you get your refund you must let us know etc.

She was pissed let me tell you.

[newimges]

I was wondering about this too.

My trustee never mentioned anything about tax returns and my case was declared no asset - no distribution. I would have thought that it was something they had to let you now before your discharge.

I am in Michigan if that makes a difference.

[rilbrianne]

I'm in Michigan too... and I'm getting mixed messages here so now I'm a little more worried than I was before. Someone said "you CAN be no asset and have it taken", someone said "but they'd let you know before discharge". ??? I'm worried they won't close it and just keep it open until tax time so they can take my refund.

Being a SAHM had nothing to do w/ it, I just kind of need the money to get a car and a job or I'll be in the same boat I'm in now, for the whole next year too. We get by ok now, but you can't improve the situation when someone yanks the opportunity to get a car and job out from underneath you.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Have any of you actually been a no asset and had your tax refund taken? Did they tell you BEFORE your discharge or send a letter at tax time saying "hand it over"? Can someone give me a definite answer?

I appreciate all of your replies... I really do

[HHM]

I would be a little surprised to see a case designated "no asset", get discharged (and especially if the case CLOSES), and THEN have the trustee come back and ask for the refund months later. Procedurally, based on how BK's work...that should not happen.

The key to look for is whether your case is CLOSED. If the case is closed; procedurally, the trustee must reopen the case. Thus, if your case gets discharged and closed, you should not have anything to worry about. If the case merely gets discharged (and is designated a no asset case), but doesn't get closed, I would call the clerk and ask about closing.

[rilbrianne]

I would be a little surprised to see a case designated "no asset", get discharged (and especially if the case CLOSES), and THEN have the trustee come back and ask for the refund months later. Procedurally, based on how BK's work...that should not happen.

The key to look for is whether your case is CLOSED. If the case is closed; procedurally, the trustee must reopen the case. Thus, if your case gets discharged and closed, you should not have anything to worry about. If the case merely gets discharged (and is designated a no asset case), but doesn't get closed, I would call the clerk and ask about closing.

I'll have to do that... maybe Monday.

Well, here's a little background note:
60 days was on Nov. 19.
I received a letter from the clerk a few days later that I needed to sign Form 23 and return it by the 28th (today).
I received a discharge on the 26th so it would seem that as soon as they received my form, they went through with the discharge. I wonder why they didn't just close it too.

I know that according to your sticky post (HHM), it may be an administrative delay and I won't push that fact... I just hope it closes soon. I just need some reassurance, that's all.

[stopthebleeding]

i am waiting until April to file lol.

[rrockinggramma]

I responded to this in your other post. In Michigan, your refund is yours to keep. Enjoy the holidays.

[newimges]

In Michigan, your refund is yours to keep. Enjoy the holidays.

I hope you are right! I could really use that refund.

[WantToBeDebtFre]

I'm in Michigan and I asked my attorney about them taking my refund and he said not to worry about it - they shouldn't take it.

[rilbrianne]

lol, I sure hope so. I couldn't find anything about being able to keep a refund in MI so I just exempted it and hoped for the best. I had called an attorney and he said not to worry about the refund (trying to exempt it) and that they had never exempted one before, but he didn't say whether or not the trustee would try to take it.