Trustee Didn't Ask to Tax Refund

[pak511]

We had our 341 on 1/7/09. The trustees asked if we were expecting the same tax refund as last year. I told him a little less since I changed my withholdings at the beginning of last year. He didn't say anything about wanting the refund. We are a no asset case and PACER has a posting from the trustee stating that it is a no asset case, fully administered and requested relief of duties. I guess we can keep the refund.

We were going to use it to fix our basement steps- would this be a justifiable necessity if he came back and asked for the refund later?

Thanks

[TEW]

He can still take the tax refund UNLESS it is covered by one of your exemptions.

[lrprn]

We had our 341 on 1/7/09. The trustees asked if we were expecting the same tax refund as last year. I told him a little less since I changed my withholdings at the beginning of last year. He didn't say anything about wanting the refund. We are a no asset case and PACER has a posting from the trustee stating that it is a no asset case, fully administered and requested relief of duties. I guess we can keep the refund.

Don't make any assumptions about your tax return. It wouldn't be the first time that a trustee withdrew an intial "no asset" finding and turned a Ch 7 case into an "asset" case due to a large tax refund.

How much is your tax refund going to be?

We were going to use it to fix our basement steps- would this be a justifiable necessity if he came back and asked for the refund later?

If your trustee changes his/her mind and asks for your refund, nothing is a "justifiable necessity". You either give back the entire refund or the trustee will set up a payment plan for you to pay him/her the amount of the refund and keep your case open until you do so.

Wait until your case is discharged and closed. Then fix your steps when the refund money is completely safe from your trustee.