Hello all, I was wondering I was discharged in 11/08. Well I just did my taxes for this year and was supposed to be getting a return, but apparently the trustee put an order into the I.R.S. to withhold my income tax return!!! My first question is can they do this? And if so, shouldn't they only be able to take 1/2 because I was the only one who filed, not my wife and we filed married joint on the return? And if they can, can they do this every year 'till the amount that I declared in bankruptcy is basically paid off? Thanks in advance!!!!!-plumbob
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In a chapter 7, they can only take the tax "refund" once. And yes, they can take it.
As for your spouse...does she work? -
No she doesn't work. Does that make a differnce? Thanks HHMComment
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It can make a difference, if she doesn't work, then she didn't "earn" any of the refund, so to speak. However, I would still fight it as it is a joint asset and she is a non-filing spouse, but since you are the only wage earner, you may lose the argument.Comment
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Thanks HHM for the help!!! I'm searching and searching all forums and it looks like if I filed in July, he would only be able to keep 7/12 of the return, is this a correct statement? Will he automatically give me 5/12 of the return, or is this just wishful thinking? I'm just so bummed!!! And who do I fight over this return with, do I call the trustee himself? Thanks again!!!!Comment
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Also, if no creditor had any objections or ever filed a claim with the court, why can he take our tax return after discharge? Is this something automatic and when he receives the money will he just send it to us?Comment
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Anyone?Comment
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Your bk was discharged but, likely not closed since the tax refund was an asset. Once the trustee decides how much he keeps to distribute to creditors, they'll be allowed to submit a claim.
You need to call your lawyer and find out how your distict handles these things.Comment
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If you spend your tax refund before you actually file, is that ok? Sorry for interferring, just curious, because i had to catch up 2 house payments with my refund. Is that ok??Comment
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If you can't exempt your refund, you need to spend it prior to filing.Comment
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Thanks keepmine, I'll have to give him a call and see what I can do!! It's just hard to get a hold of him!!! Thanks again!!!Comment
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