Asset Case

[kw1025]

341 went fine Oct 2, mid Oct trustee turned it into a chap 7 asset case, now my attorney said that the trustee won't do anything until he sees 2009 tax returns, because I had a $50,000 refund in 2008.

No creditors showed at the 341, and deadlines for objections in Dec 1 -no objections yet, and we do not anticipate any. I am planning to buy back a few rental properties i own.

Does this sound like normal stuff?

[DeadManCrawling]

Holy cow!

50 k REFUND?!?!

I can see why the trustee is interested. You need to change your withholding. This is a 50k interest-free loan you gave to the government.

I made enough to have a refund this size and was advised by my attorney and accountant at the time to change withholding, come up with more deductions and so on. The reasoning was this: If you ever receive a judgment, lien or file BK, this money is almost a guaranteed loss.

I guess you are seeing the potential for this.

It is too late for this year, but you should reconsider your IRS picture in future years for this reason.

Good luck, and please keep us informed.

Are you expecting a large refund this year?

A number that big could result in dismissal or conversion, not a good thing in most cases.

Best wishes,

-dmc