Wedding ring and Tax refund question

[eventsdj]

Before we file, should I sell my ring? If there just going to take it, its worth about $3,200, and we could get a little money for it somewhere, and sock it away.
I'm assuming it will be exempt, as we don't have too many exemptions, but if they demand it...

If we file late November, December, will they automatically take our tax refund? We are in Wisconsin.
Frankly, for the relief BK will give, they can have it, but we get about $3000 back, and it would be nice to hold on to $1,000 or so for our 15th wedding anniversary in March.
We never go ANYWERE. Even a weekend away would be nice.
Should I just squash that dream now??

[nerves]

The trustee will most likely most or all of the refund. We have gotten about $10,000 refund each year for the last few years and my lawyer advised me to change my withholding to exempt because we are only going to be able to keep a $1000 of the refund. The trustee is going to get the rest. As for the wedding ring - check your exemptions. Iowa laws stated this is exempt but each state is different. Congrats on your 15 yrs of marriage.

[lrprn]

Before we file, should I sell my ring? If there just going to take it, its worth about $3,200, and we could get a little money for it somewhere, and sock it away. I'm assuming it will be exempt, as we don't have too many exemptions, but if they demand it...

You say later on you are in Wisconsin. Assuming you intend to file in WI, then here's a link to your state's bk exemptions - http://www.thebankruptcysite.org/exe...wisconsin.html

You have a generous personal property exemption in Wisconsin - $5,000. The average American household has goods worth $2-3,000. Your ring should fit within this $5K and be protected.

However, to be safe, consider wearing another ring to your 341. No sense flashing your wedding ring in front of your trustee's eyes if that's not necessary.

Consider having your wedding ring appraised by a competent jeweler in your area. Do *not* get the insurance value. You want to know how much the jeweler would give you as a trade-in value. My guess is that it's going to be worth less than you think it is. That's good because it makes the ring easier to protect with your exemptions.

If we file late November, December, will they automatically take our tax refund? We are in Wisconsin.

It all depends on your trustee's customs regarding income tax refunds. If you are filing with a lawyer, he/she can tell you what to expect. Some trustees will delay your closing to see how much the refund will be, and others won't care.

We never go ANYWERE. Even a weekend away would be nice. Should I just squash that dream now??

If you file in December, then you should be discharged by March. Once you aren't paying your unsecureds any longer, with careful budgeting you can save enough to celebrate your anniversary even if you lose your entire tax refund to your trustee.

Congrats on your fifteen years together! Remember that it's being together that really matters. Even if you don't get to do something "cool" travel-wise on your anniversary, there's nothing wrong with celebrating a 15-and-a-half-years anniversary doing something special in Sept 2010 when you've had more time to save up

[CCsAreEvil]

I was surprised from my 341 meeting last week about the UST telling the group of us (6 different parties scheduled for 341 meetings that block of time) that our 2009 tax returns become property of the UST. He said we need to send our 2009 tax returns to the Trustee's office once we file.

Since I filed in Sept 2009, my lawyer said the trustee will most likely take 2/3's of our tax refund. I was unaware this was going to happen.. but you know what, I'll be happy to be discharged and still get 1/3 of my refund. It's not going to be that much, anyways.

And, I was advised to change my withholdings to EXEMPT so from now until the end of the year, no more taxes will be withheld from paychecks. It's funny how the system works.

[jwmc1]

Be careful when you claim "EXEMPT" on your W-4. When you do that you state under oath that you had no tax liability in the previous year and that you do not have any tax liability this year. Liability doesn't mean that you got a "refund" it means that you would be entitled to a refund of ALL withholding...

[UpsideDownMI]

If you have a wildcard exemption, it can be used to protect your tax refund.

[OhioFiler]

Be careful when you claim "EXEMPT" on your W-4. When you do that you state under oath that you had no tax liability in the previous year and that you do not have any tax liability this year. Liability doesn't mean that you got a "refund" it means that you would be entitled to a refund of ALL withholding...

When the employee files his annual tax return if he owes too much then he's penalized regardless of his W-4 status. Indicating exempt on a W-4 won't matter. The employer will notify the IRS of the status which may raise a red flag on future returns.