Bankruptcy discharged 2008 taxes to give back

[starbella]

So my bankruptcy was discharged about a month ago. I received my tax refund and called the trustee. I was told I have to send it all back. I was in shock. The guy that did my bankruptcy said I need to call them when I get it,but just make sure to tell them that I will be paying bills with it. Has anyone else heard of this. It's 3200.00 and I already had that money spent :-(

[debtmonster]

I got my tax return of $1800 and spent it back in May. Are they going to make me give my money back, too?!?!?

[jribe]

So my bankruptcy was discharged about a month ago. I received my tax refund and called the trustee. I was told I have to send it all back. I was in shock. The guy that did my bankruptcy said I need to call them when I get it,but just make sure to tell them that I will be paying bills with it. Has anyone else heard of this. It's 3200.00 and I already had that money spent :-(

when did you receive your tax return? Was it recent? Or are they asking for it that was sent earlier in the year?

That's horrible BTW. I don't see how they can do it if you could cover it in exemptions..

[aces67]

If your attorney didn't exempt it then the trustee can take it.

Did your attorney actually exempt it?

I got to keep mine and I just got it 2 weeks ago but it was listed in my exemptions.

[wantout]

My attorney asked what my tax refunds were like. I told him average between $400 to $500 total. He said ok, anything over $1000 and the TT would want it.

[justbroke]

So my bankruptcy was discharged about a month ago. I received my tax refund and called the trustee. I was told I have to send it all back. I was in shock.

You should contact your attorney. Generally speaking, attorneys will exempt the future refund. Also, the Trustee is only entitled to a pro-rated portion of any Income Tax Refund that is not exempted. The exemption is not automatic unless it's money from the earned income credit (EIC) provisions in the tax code. Your lawyer would have needed to take an active role in doing this.

Check your Schedule C: Property Claimed as Exempt. Look to see if your "Future Refund" or "2008 Refund" is listed. If it's not, you have issues!

If your case isn't closed, your attorney can file an amendment to exempt the refund, if you have money left in wildcard exemptions. Or maybe even a portion of it. Also, depending on when you filed, the Trustee may not be entitled to the whole thing. If your case is closed, it probably isn't worth the $260 to re-open and try to fix the exemptions.

There are too many questions... Is your case closed? Did your attorney exempt the money? When did you file? When did you receive your discharge?

[debtmonster]

If your attorney didn't exempt it then the trustee can take it.

Did your attorney actually exempt it?

I got to keep mine and I just got it 2 weeks ago but it was listed in my exemptions.

How can they exempt it when I already spent it? So now I will have to come up with that money that I got from months ago?!

[justbroke]

How can they exempt it when I already spent it? So now I will have to come up with that money that I got from months ago?!

If your case isn't closed, and you have exemption money left, they can exempt it... even if you spent it.

[debtmonster]

If your case isn't closed, and you have exemption money left, they can exempt it... even if you spent it.

What a CROCK!!!

How can they put you into debt when you're trying to file bankruptcy? Talk about a scam!

[justbroke]

What a CROCK!!!

How can they put you into debt when you're trying to file bankruptcy? Talk about a scam!

Who is scamming whom? This is pretty much told to you at your 341 Meeting if your return is required. If you filed with an attorney, shame on your attorney.

I don't understand how this is turned around to be a scam and that the Trustee is putting you into debt. If your case requires the surrender of your future tax return, and you spend it... just who put you into more debt?

[debtmonster]

Scam because you've already spent the money and now you're supposed to come up with money already spent?!? I can see an UPCOMING tax return, but not one received months ago that was spent on living expenses.

[justbroke]

Scam because you've already spent the money and now you're supposed to come up with money already spent?!? I can see an UPCOMING tax return, but not one received months ago that was spent on living expenses.

I didn't read where the OP (starbella) had spent a "prior" tax return. Seems to me the refund was for tax year 2008 (refunded in July 2009).

The OP (starbella) got discharged in 2009 (just a month ago), so that means that the unspent 2008 refund (issued in 2009) was on the table.

I totally agree with you if this was for the 2007 refund which was issued in 2008 and spent in 2008 (or even spent in 2009). I would also agree with you if the OP (starbella) had filed after having received the refund. However, my issue is that this refund was received after the OP (starbella) filed and just after starbella was discharged (a month ago).

[debtmonster]

Well, getting the refund "after" filing is sort of different. Now you're walking a fine line. If you start getting monies from all kinds of places between the date you file and the discharge, they can rag hard on you and try to get the money. But my money was received and spent months prior to me filing.

[music12]

i think debtmonster is worried about his past tax refund that he had already received, not an expected tax refund not yet received.

[LuciluS]

Debtmonster & Justbroke & any others who have questions about tax returns.......I started a new Thread: Let's talk about Tax Returns.