Saving to file early 2009...what happens to taxes?

[roozterdvx]

As I stated in a previous thread, we met with an attorney last week and sent him a retainer fee and signed agreement this week, (this is now the end of 2008). We are saving to pay the rest of the attorney fee, filing fee, and classes for ch7.
Since we will be filing in first quarter 2009, what happens to our possible income tax refund after filing our taxes in April?
From what I've been reading on here, my line of thought is that the filing date is what counts for possible tax refunds.
Since we plan on filing in 2009, will the trustee look for our 08 refund if we get one, or will he/she look at taxes paid from Jan.1, 09 up to the filing date and calculate on that.

Basically, we have exhausted all our money, everything except our car payment is behind with creditors calling constantly and living week to week.
We are letting the house go and hope to use any possible refund for rent, (first-last-security), if possible.

BTW, we're in Florida.

Thoughts?
Opinions?
Facts?

Help!

[momof3b1g]

As in our case-Yes most likely the trustee will take your 2008 tax refund. You need to exempt it if you want to keep it. Or wait until after you have recieved and spent it before you file.

[HHM]

Since you are not filing until the end of 1st quarter, file your TAXES ASAP, and get the refund in house before you file and spend it. No point in giving the trustee free money if you don't have to. Bottom line, don't wait to file your taxes, as soon as you have all your W-2's and 1099's, file your taxes.

[roozterdvx]

Wouldn't that raise a flag to the trustee? Recieving a refund check and spending it without putting it toward bills?

Also, I don't know if we can wait that long...don't usually get our tax forms till end of Jan. then check if any usually comes around April if memory serves correct.

If we can pull it off, can't the trustee still hit us for any money spent from a refund?
I don't want to spend money on a house that we're giving up and I'm afraid of the consequences if the trustee decides we spent the money poorly and have to pay it back.

If we recieve a refund, cash the check and stash some money away....I'm grasping here guys. I guess when you're down, it's hard to look up and stuff like this is driving me deeper into an emotional abyss.

Sorry for all the questions and ramblings...I'm feeling lost and I actually take some comfort voicing out anonymously where I can get some of this weight off me without feeling ashamed of our situation.

[DopeyDwarf]

At our 341 meeting on Dec 1, we were told REGARDLESS of our case being discharged, we have to submit a copy of our tax return to our trustee, and any applicable refund goes to her as well. No choice, no exemption. We are a no asset case, and a s'simple' bankruptcy case.

[momof3b1g]

Our attorney said as long as the money goes to needed things. Car repair, heat(in our case a load of wood) food etc. We would be fine.

[okiemom2008]

Our attorney said as long as the money goes to needed things. Car repair, heat(in our case a load of wood) food etc. We would be fine.

So if you file bk in February there is no possible way to keep it?

[momof3b1g]

So if you file bk in February there is no possible way to keep it?

Yes you can if you spend it before you file. Or if you have enough exemptions you can exempt it.

[roozterdvx]

We are using our exemptions to protect other assets and are actually over a little bit so our lawyer is setting us to back back the overage over a 3 or 5 yr period.
If push comes to shove, and the trustee takes it...we can live with that. Getting out from under all of our debt and losing a tax refund is still worth it.

[limage]

Can you use the return to pay for your attorney and filing fees? I am filing in March and would love to use it for that expense.

[momof3b1g]

Can you use the return to pay for your attorney and filing fees? I am filing in March and would love to use it for that expense.

Yes you can.

[CatsInTrouble]

my lawyer also said to do it and spend it asap before filing if possible.

[momof3b1g]

I think my dishwasher knows this, as it decided to go out on Christmas day. So looks like we have to put part of it towards that. LOL

[Tbornetun]

Losing a tax return is a small price to be debt free. Keep in mind the amount of debt you are able to walk away from.

[momof3b1g]

Losing a tax return is a small price to be debt free. Keep in mind the amount of debt you are able to walk away from.

I agree, but ours is not near the amount of most others. We rely on that tax return every year. Its like a savings account per say. Not tempted by spending something you don't have. Being below median we need all we can get.

Does anyone know about changing it so we can get back more each paycheck? We already claim ev1 in the household and still get a big check back.