Chapter 7 and tax refund

[onetimebk44]

I'm confused. If you file in early Novemeber wouldn't you get a discharge sometime in February. How could they take your refund if you don't file your taxes until March? They can't take your refund after the BK has been discharged. Also...when would they deterimne when they can take your refund? You don't know what you're getting (if anything) until it is time to file (assuming new tax laws would have to take affect) or at least until January of 2009.

[Tbornetun]

If you file November 1st, the trustee can attempt to take 83% of your 2008 income tax refund (the one you file in 2009) after you subtract any earned income credit if you don't exempt it. A lot of times they don't, but they can do it if they choose to. It depends upon your district, in some areas they don't even ask about the refund while others it is on top of their list. The amount of the refund will also come into play. The trustee is not going to waste their time with a $900 refund, but if you are getting $5000 back, they may look into it. Discharged does not mean closed. Usually though, you will have already heard if the trustee is going to go after your refund by the discharge date.

[Mi Bankruptcy]

Schedule C will list your property and how it is exempted. Check there first.

Thanks Tbornetun. I didn't see my income tax exempted on Schedule C. I wanted to make sure it was not suppose to be somewhere else.

Thanks
MI

[mindyandy420]

Unused portion of homestead

Does that mean if I expect a tax refund I can use the unused portion of homestead to exmpt it?

[stressedinmn]

Tbornetun,
Can you rec. a good lawyer here in MN?
In the NW suburbs.

[Tbornetun]

I sent you a PM.

[mindyandy420]

Another question

I live in Washington state where we can choose to use the federal exemptions (which is better) I dont own a home and really have nothing to claim except my tax refund next year. My question is I plan on surrendering my car (sug. retail value of about 8,000) can I use this and my refund as an exemption under the unused portion of homestead?
Also the federal exemption says married couples may double...is this true?

[Nicollette]

Mindy,

Are you filing your paperwork yourself, or are you hiring an attorney? Just wondering because, if you are hiring an attorney, that's what he/she is getting paid the big bucks for, is filing the proper paperwork for you.

[dogbone33]

I don't see how they can take your child credit and earned income credit? Or don't they?

[mindyandy420]

I'm hiring an

attorney. I am meeting with him tomorrow for the first time. Best believe I am gonna ask this question. Living in Washington state I am able to use the federal exemption which I can use $10,000 in unused homestead....I hope!

[Tbornetun]

I don't see how they can take your child credit and earned income credit? Or don't they?

They are not allowed to take earned income credit, I am unsure about the child credit.

[TEW]

Mindy,

Are you filing your paperwork yourself, or are you hiring an attorney? Just wondering because, if you are hiring an attorney, that's what he/she is getting paid the big bucks for, is filing the proper paperwork for you.

[Mi Bankruptcy]

In Michigan I just found this court overruling the trustee about tax refunds. I also Google'd another case for MO and they had one where they can take the Tax return.

I thought some of us low wager earners might like to read the case.

http://www.mieb.uscourts.gov/courtOpinions/opinions/07-57763.pdf

[mindyandy420]

I have

had 2 lawyers tell me that they cant take it under exemption?

[Mi Bankruptcy]

My attorney's paralegal has been emailing my paper work back and forth and I have been going through it with a fine tooth comb. I called them on some things including not exempting my tax refund. Her statement was your attorney was not that concerned because we well below the median income( first time this works to my favor:o).
So, basically she said he assumes the Trustee would not go after it.. I laughed.. Told her when people ASSUME.. It makes an ASS of-U-ME. I had to tell them I don't care.. list it on Schedule B and exempt in Schedule C like The court case above. This tax return will pay off one of my vehicles.. most of my second vehicle and put Propane in my tank.. So.. I definitely need it.

It was kind of funny the paralegal initially told me I would'nt be able to file Pro Se.. becuase it was too much paper work. and I would know what to do.
She changed her mind after I picked her paper work apart. At one point they didn't even have my wifes maiden name( 8yrs) and dates were wrong. They left off two creditors.. I suppose this what I get for a $750 attorney. LOL

She even argued with me when I told her she needed to list my EDU loans on the list.. She said you can't discharge it.. I said I know.. However, if I have to list other creditors I am listing them as well. She ended up coming back and saying your right.. It's good practice.