tax return being direct deposited question

[freshstart10]

i have already filed and my taxes were exempt. i have my 341 later this month. my question is, will it be safe for me to have my tax return direct deposited? i have 2 checking acct one bank i had debt with and the other no debt. so i assume i would have it direct deposited to the acct with no debt?

so is it cool to have it direct deposited or would it be better just wait and get the check?

also is it ok for me to start saving money with a bank or should i just keep cash for a while?

[magyar123]

Have it auto deposited into the bank that you don't have any debts at/in. But why do you still have an account with a bank that you have a debt with?

[freshstart10]

i dont really use it at all...its just there.....can anyone come after my money if it goes in the acct where i have no debt?

[quietmaria]

The trustee can if its been within 180 days of your 341. Mine made me sign something saying I will not spend it until a determination is made on if I can keep it. You can go to jail for spending a tax refund that the bakruptcy courts deem is theirs.

[freshstart10]

quiet maria, but what if i exempt it?

also to anyone....even though it is exempt is it a bad idea to keep a large balance from taxes in my acct before i go to 341? would it be smarter just to get check,cash it and keep the cash for a few months?


thanks

[quietmaria]

If they let you exempt it. Missouri only lets you exempt $1200 for individual and $300 per dependent in cash. But I personally would seek guidance from an attorney. The exemption amounts are different in each state. Your attorney could give you guidance on what to do before you file. If its exempted then it should be ok, but I would most definitely wait until the trustee discharges your case. More than likely, the trustee will tell you at your 341 that they want to see your tax returns. They also make you sign something stating that you agree to No rapid refunds and that you cant spend it until they say it is ok. My trustee extended my discharge date until I produced my tax refunds. It was supposed to close Tuesday of this week but she extended the date with the courts until May.

If your tax refund is that large, the Trustee will more than likely keep part or all of it. But again, exemption limits vary from state to state.

[Mi Bankruptcy]

I also exempted tax return to the tune of 6k. I expect it to direct deposited next week 5.5K. I already had our 341 and the trustee didn't say anything about wanting my taxes. Of course, I had plenty of room left over for exemptions. You would most likely hear something either prior to your 341 if the trustee has an issue. Your attorney would also most likely know what they do with tax returns in your area. I would wait until you have your 341 to make sure they don't have an issue with it. Also, don't bring any attention to it at the 341, It's already in the paperwork. I would try to keep your bank account balance down to a minimum. Remember we're broke and filing bankruptcy. Now if your 341 wont be until after April 15th. I say direct deposit it but spend it on necessary stuff( new tires, home repair and the like) Keep receipts and track what you spend it on. Only buy necessary stuff.

I was stressed because I got paid the Friday before my 341 and my house payment is auto deducted from my account. I was concerned they were going to take my check and I would be late or not be able to make my house payment for the first time. I brought an updated copy of our bank statements. They never looked at it.

Good luck.. hope this helps... Of course, always check with your attorney

[nervousss]

I am having mine direct deposited, and then I will write my lawyer a check for whatever they say I need to give back. I won't spend any of the money, I just have always done it that way. I honestly have not had a paper check for anything in years lol