I have a question....I filed on February 12th, 2009....the same day my direct deposit for my tax return was deposited...so I have over $4000.00 in my account on the day of my filing. Am I going to have problems with this? Also, I didnt know when my case was actually filed until a couple days after the 12th...I went to Walmart and spent a chunk of money on things I have been needed. (spent $1700 on new clothes for me, nephew and sister. ( They live with me and I support them). Also bought paint for the house, kitchen curtains, a new toddler bed for my nephew with bedding, shoes for all of us, $350 worth of groceries, cleeaning stuff and toiletries for the house, diapers and wipes for the nephew, a vacuum, dog food....we basically went and bought stuff we have been needing for awhile. So I filed on the 12th, my direct deposit tax return was deposited on the 12th, and a debit for $1700 on the 12th...is this an issue? I am able to exempt $2000 of my tax return...any advice will help. I go for my 341 on the 11th.
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I would say yes you will have an issue and may be asked to pay some to your trustee. You should as little as possible in the bank the day you file and your attorney should have told you that and filed on a day that your direct deposit does not hit -
Why would you go on a shopping spree like that? They may question it not sure. Did you ask y our attorney about the money that you had in your account on the day of filing? Does he/she know that you went on a shopping spree? The trustee may question it because it is a large amount of money to spend. 1700.00 on clothes in Walmart??? WOW.... You better make a phone call to your attorney and let him know what you did. You may have to bring back everything, except for the food naturally. Call right away, otherwise you may have to pay it all back to the trustee.Comment
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She said she spent 1700. on all those items, not clothes.
Since 2000. is exempt, you should be ok, but I, too, cannot believe that your lawyer did not tell you anything about this.
That is why you need to read these forums before filing!
I said it before, I have learned more on the forum than I could have from 10 attorneys.Comment
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The stupid thing this is some of us have money in the bank to clear the checks we have written. I have 700 in the bank but that is because I am waiting for the rent and car payment to clear. I cannot pay the car payment any other way except check. I hope they do not say anything about it.Comment
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Was your tax return mostly Earned Income Credit?Comment
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Note for any future filers reading.....if your lawyer is not already communicating what you should be doing in terms of your bank account etc prior to filing then ask lots of questions. In AZ (where we filed) the exemption is $150 per person on the petition ($300) for a couple in the bank. Anything over that is not exempted. As far as waiting for checks to clear and such....stop using checks when your filing date is nearing and use money orders or cashiers checks to pay your bills. This way you do not run into the problem of your balance being above the exemption because of a check that hasn't cleared. Your lawyer should be communicating your filing date to you. If they aren't then push for that communication. You are paying them to work on your behalf and they are being paid to look out for your interests as well.Filed C7: 12/16/08; 341 Meeting: 1/22/09
Last Day for Objections: 3/23/09 (No Objections)
Discharged: 4/3/09
Closed: 3/23/10Comment
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Just a note on tax returns.
You were unlucky to have your money direct deposited too soon. I do taxes on the side, and direct deposits are supposed to be on Fridays only. But, I know for a fact that the IRS sends out the direct deposit info to the banks early. Two of my customers this year received their money 2 days early, and they are both customers of TCF bank. I have WAMU (Chase), and it was deposited on the Friday that I expected it.
Here's how it is supposed to work: If you file and the IRS accepts your return by noon Thursday (not sure what time zone), then you get your direct deposit the following Friday (8 days later). If you request a paper check and used e-file, then the checks are sent out 1 week after the direct deposit date.
If you are really counting on spending your taxes before you file, there have been cases where the IRS attempts a direct deposit, but it somehow fails. In that case, they will not try again, but will mail you a paper check on the following Friday.Comment
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Well then I am in trouble since i have 700 in the bank and they filed for me today or tomorrow.
Lawyer never said anything about having over 150.00 anywhere.Comment
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my lawyer told me that i had $2000 exempt from my tax return, therefore I considered that my money and i was under the impression that i could use that how i needed to. The 1700 was not just spent on clothes, jessegirl, rather things that we needed for the household. I got $4300 back from my taxes, and I have the $2300 ready if the trustee wants to take it. But doesnt exempt mean its mine? I didnt know when my case was going to be filed, it just happen to be when I went to Walmart.Originally posted by jessegirl View PostComment
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what about states like Cali with $20,000 'property wildcard' exemptions? Can you include bank account cash with that?
we all need cash in our accounts for rent, car payments, etc.. right?Comment
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Molly:
Was most of your return earned income tax credit or was it overpayment of witholding throughout the year?
Sorry, just saw that you didn't know what it meant.
Taxpayers under a certain income level get a refundable tax credit for dependants, it can be quite large, in the few thousands depending on your income.
Did you make less than 38,000 last year and claim dependants?Comment
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The reason I asked is because the EIC is usually a protected asset as it is a type of welfare payment ( not really welfare, but gets the same treatment).Comment
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