Tax refunds?

[momof3b1g]

I have read that if you file in July they can only keep 1/2 of your return. If you file in December they can keep all of it.
If we wait and file in January 2009 would they still get all of 2008's refund?

[Mi Bankruptcy]

Did you exempt it. I am providing my scenario below.
Our 341 is not scheduled until Jan 09. I am CH7 no asset. So, I don't actually know if this will work.

We had plenty of room in our exemptions and were well below the median for the size of our family and income. I told our attorney that I wanted our 2008 tax return exempted( filing in 2009). He said he wasn't worried about it because of where I was on the median and my exemptions. I told him I wanted it listed anyway. He listed it on

Schedule B
Anticipated 2008 Tax return $6,000

On Schedule C He listed:

He put "Anticipated 2008 Tax Return"
(Husb)11 U.S.C. 522(d)(5) $3,000
(Wife)11 U.S.C 522(d)(5) $3,000

[momof3b1g]

Not yet. But at the first meeting he didn't make any mention of being able to exempt it. He just said they would take it. I wasn't sure how it worked if we could hold off the wolves until January, we could still keep it.

[RedLight]

Also, if the case is closed, what are the chances that the trustee is going to file a petition to reopen the case? I guess if the case was still open, it would be worth it, but it would take significnt resources and time to dive back into a closed case. And, given the fact that if you file in January, by the next year round, you should be discharged and closed. Just my .02 cents.

[momof3b1g]

Also, if the case is closed, what are the chances that the trustee is going to file a petition to reopen the case? I guess if the case was still open, it would be worth it, but it would take significnt resources and time to dive back into a closed case. And, given the fact that if you file in January, by the next year round, you should be discharged and closed. Just my .02 cents.

I think it is something that is written in, as they know you will be getting a refund. Its not that they are going to take money that you got after it closed. I think others have said that they never say it, it went right to the trustee.

[laurannm]

I think it is something that is written in, as they know you will be getting a refund. Its not that they are going to take money that you got after it closed. I think others have said that they never say it, it went right to the trustee.

99% of the time, if the trustee is interested in his/her portion of the refund, they will notify you before your discharge/closing, and they will usually keep the case open until the refund has been received by them. Once your case is closed, the refund is yours to keep.

[momof3b1g]

99% of the time, if the trustee is interested in his/her portion of the refund, they will notify you before your discharge/closing, and they will usually keep the case open until the refund has been received by them. Once your case is closed, the refund is yours to keep.

Hmm not sure if that is good news or bad. We have to wait longer for the case to close. But if it closes we may keep it. But don't they put it in the stipulations of the bk? I think this is what MIL/FIL had to do. I will have to ask.

[jandrl2001]

just got back from lawyers, filing tomorrow ch7 no assets, he said we didn't need to exempt our 08 refund i hope he is right

[JJL]

just got back from lawyers, filing tomorrow ch7 no assets, he said we didn't need to exempt our 08 refund i hope he is right

I was told I didn't need to either. I get just under $1000 back from federal and am WAAAAYYY under Median income for my state.

[momof3b1g]

We get back about $5000. wonder if its because of the equity in the house or exemptions. Won't know until we file. We are under median too. HMM

[laurannm]

Hmm not sure if that is good news or bad. We have to wait longer for the case to close. But if it closes we may keep it. But don't they put it in the stipulations of the bk? I think this is what MIL/FIL had to do. I will have to ask.

Getting the discharge is the key. Even if it your case remains open in order to collect a tax refund, getting the discharge is most important.

It could be a stipulation of the BK..again, depends on the district/trustee. If it is going be a stipulation, you will most likely will know well in advance of your discharge.

[momof3b1g]

Getting the discharge is the key. Even if it your case remains open in order to collect a tax refund, getting the discharge is most important.

It could be a stipulation of the BK..again, depends on the district/trustee. If it is going be a stipulation, you will most likely will know well in advance of your discharge.

If we could just get this filed. LOL DH is out of town so we are hoping for next week. But it seems so far away.

[Gabriel_S]

Wow.....I was never aware of this. My 341 hearing is Dec 30th. Discharge date would be March 2nd 09. I am also under the median. My tax return will probably be around 2 or 3K. I'm a no asset case. Does the Trustee really take your tax refund? I was really hoping for this money to help get me back on my feet again. I live in Wa. state btw.