Tax Return Question

[momof4angles]

I know this question may be silly but I have to ask. We are planning on filing for chapter 7 due to loss of income. My husband is in the construction field, in 2008 he started seeing a decline in income, due to loss of overtime (he worked about 55 hrs a week for the past 6 yrs.). The hits hits came with layoffs, no holiday pay, no sick pay.. We got behind in everything, except our morgage.,

We will be getting a $3000 tax return, within the next week. We probaly will not file for about another month, I have to get teh papaerwork together. We only have to pay $299 to file because it is covered by the union legal fund. So, can we use the rest of the money to catch up on house insurance, parking tickets, childrens activities, excise tax, electric bill or will this cause problems??

Thanks in advance!!

[Trixie007]

Those all sound like reasonable expenses. Not sure what kids activities you mean, but probably fine if they're reasonable. Welcome to the forum, I hope you find answers and support here!

[danaf]

It shouldn't be a problem. Spend it BEFORE you file. Keep receipts and be prepared to show trustee what you spent it on (because it will be part of your 'estate'). Try to exempt any you may have left. Then after you file, you may need to adjust your withholdings depending on whether or not the trustee will want to go after your 09' return.