We just received a Order of No Assest Case in our Chpt 7. I just did my taxes and we are due a refund however our Trustee said that we are to give that to our Attorney. He said that is not consistant with a no assest case and to just let him know when are receive it. I'm confused now on if we are entitled to it or not? Does this have any affect on our discharge?
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Our trustee said the same thing and we are no asset as well. I think that the thinking is if you do receive a large refund and don't have enough exemptions to cover it, then they could technically take your refund as an asset and thereby convert you to an asset case. I might be wrong though.
We are going to get back about $2700 in refunds and our attorney can exempt $2400 of it. He doesn't think the trustee will even bother with the other $300, so he thinks we'll be able to keep all of it. I filed my taxes on Tuesday and submitted a copy of my returns to my attorney who filed an amended list of assets to include the refund. That shows up on pacer already, but I'm not sure at what point I get the official word that my refund is ours to keep. -
You are not entitled to the refund because technically it was money owed to you on the date you filed. Whether or not you are allowed to keep it (if you can't exempt it) depends on the trustee. In the worst case scenario, being converted to an asset case does not delay discharge. Closing, however, can take much longer.Comment
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