Tax return & BK7

[jrsmom]

I have a really dumb question. Daughter filed BK7 on 1/4/08. 341 is 2/13. Estimated discharge 4/14/08. From what I'm seeing in this forum, it looks like the trustee can demand she turn over her tax refund. Is that correct? Just want to know so that I can suggest to her that she be prepared for this.

Thanks!

[wellspring]

yes they can take it if it's enough for them to be interested in. The trustee in my case wanted mine. My cousin who also filed ch 7 and had an even bigger refund than mine was allowed to keep hers. Doesn't make sense if you ask me, they need to have a set of rules pertaining to refunds that's set in stone, rather than relying on the Trustee's mood that day. Personally, I hope my trustee sleeps like crap at night, knowing he takes food out of children's mouths and clothes off their backs, but somehow I doubt it!!!!

[gophermn]

I know I asked a ?? like this a few weeks back. When I asked my BK Attny he said I have some $$$ left to use as a wildcard exemption. I am not sure how I can find out how much that is?
But, check to see if your state offers wildcard excemptions.

wellspring - so if you were discharged 10/07 you still have to give up $$$ in 2008?

[tay666]

wellspring - so if you were discharged 10/07 you still have to give up $$$ in 2008?

Yes.
Because the return you recieve in 2008 is a refund of money earned in 2007.

[dp1969]

I have a really dumb question. Daughter filed BK7 on 1/4/08. 341 is 2/13. Estimated discharge 4/14/08. From what I'm seeing in this forum, it looks like the trustee can demand she turn over her tax refund. Is that correct? Just want to know so that I can suggest to her that she be prepared for this.

Thanks!

I had a couple posts on this subject. I NEED my refund. I owe people money from before the filing. These are people that "will break my legs" (JK)!! Seriously, they do need to be repaid...they took loans from there own escrow accts to help out and UNLIKE MY CREDIT CARD COMPANIES, they accepted a lower interest rate.
I'm sorry, but I could give a "rats patootie" on any money going back to those CC companies. They never wanted to work with us after 8 months of discussions and pleading. We made every payment on time, all the time and not until we filed did we stop paying. We were customers with most of our CC's for 10+ years and I just think it was crap to b treated like we were.

Now the question...what happens if we go to our 341 and nothing is mentioned with the trustee. I then head over to my uncle (our CPA)that day, have him put a rush on our taxes and get them back via direct deposit before any such motion from the UST. I then pay back these people, immediately, and get receipts. What would be the worst. I, really, didn't expect to be getting anything back at the time of filing and the 341??? That would be the truth.

[wellspring]

I know I asked a ?? like this a few weeks back. When I asked my BK Attny he said I have some $$$ left to use as a wildcard exemption. I am not sure how I can find out how much that is?
But, check to see if your state offers wildcard excemptions.

wellspring - so if you were discharged 10/07 you still have to give up $$$ in 2008?

I had to give up some of it, but not all of it. I was able to exempt 2500 of it for my "cash on hand" exemption, plus the rest of it after the date of filing was mine to keep. I changed my W2 exemptions, filed a W5 for the EIC , which really lowered my return amount, so he ended up with just a few hundred dollars. My original question concerned the Tax Rebate that Congress has passed. I was confused as to why my Trustee wanted that when I was under the assumption that anything you received after the date of filing was yours to keep. I am wondering now if he can only take a portion of it, like how they pro rated my tax return. I called my lawyer, but he was in court and never got back to me, which is unusual, he's pretty prompt returning calls. I am going to call him Monday and find out the answer to this.

[keepmine]

I had a couple posts on this subject. I NEED my refund. I owe people money from before the filing. These are people that "will break my legs" (JK)!! Seriously, they do need to be repaid...they took loans from there own escrow accts to help out and UNLIKE MY CREDIT CARD COMPANIES, they accepted a lower interest rate.
I'm sorry, but I could give a "rats patootie" on any money going back to those CC companies. They never wanted to work with us after 8 months of discussions and pleading. We made every payment on time, all the time and not until we filed did we stop paying. We were customers with most of our CC's for 10+ years and I just think it was crap to b treated like we were.

Now the question...what happens if we go to our 341 and nothing is mentioned with the trustee. I then head over to my uncle (our CPA)that day, have him put a rush on our taxes and get them back via direct deposit before any such motion from the UST. I then pay back these people, immediately, and get receipts. What would be the worst. I, really, didn't expect to be getting anything back at the time of filing and the 341??? That would be the truth.

It depends on the pratice of the trustees in your district as to how refunds are handled. You need to ask your attorney what is customary in your district.
Reality is, it does not matter if you rush to file your taxes after the 341. The trustee is the one driving the bus. All they need do is discharge your bk but, not close it until they have the tax information they require.
Your best course of action is just find out what to expect.