PACER shows bad news, I guess........

[justbroke]

My attorney told me I could exempt mine (WD Mich) as long as I don't exceed my state's allowance.

As everyone is seeing, this is State specific. While many States have very gratuitous "wildcard" exemptions, some States limit the amount of actual "cash" that you can exempt. A tax refund is considered cash.

[munchkn813]

How do I see what my state's limit is for this?

[SleeplessMI]

How do I see what my state's limit is for this?

Try this link:

http://www.legalconsumer.com/bankruptcy/laws/

[Mi Bankruptcy]

My attorney tried to tell me that the trustee does not take tax returns.. I said then you shouldn't have a problem exempting my return. 3k for me and 3k for my wife. He didn't like I made him modify the paper work to exempt this money. However, after I read a case in Michigan where the trustee never said anything about it I then came back and asked a lady where the money was and that he wanted it, I didn't want to take any chances. The case ended up going back into court and the judge said the trustee had a right the return because the filer did not exempt the return..

[mom2three09]

I don't think our attorney exempted any portion of our tax return, but the trustee never said a word about it and we are now discharged & closed We usually don't get back much (under $2K) but this past year dh didn't make as much $$ so we're now getting back over $5K

[momisery]

What if you owe the feds and get a refund from the state, or visa versa? Do they add them together, or do they take part of the refund and stick you with the debt?

[LSUTiger32]

Just a quick update: I filed my returns and now I am waiting for the paper checks because my TT said no direct deposits. He changed me to an asset case and put out the word for people to file claims. If a claim is filed would it show up on PACER? If so, no one has filed a claim yet and they have less than 4 weeks to do so. What happens if no one files a claim, who gets the part of the tax refund that the TT takes?

[justbroke]

Yes, claims must be filed in order for unsecured creditors to get a share of the proceeds. If enough file that would consume the entire refund, then the refund, less the Trustee's commission, goes to the unsecured creditors that did file. The refund is split pro rata between those that filed.

For example, if your refund is $4K and you have $50K of unsecured debt, but only two creditors totaling $2K file, then the Trustee would get his $1K, plus the two creditors would get $2K, and you'd receive the rest. However, if those two creditors were each $5K, then the Trustee would get $1K, then the two creditors, that did file, would get $2K each. You would get nothing. The only real way to get some of it back, is if no creditor files, unless the creditors that do file are relatively small.

[CCsAreEvil]

Oh.. this is what I did not know. Let me get this straight. So, once I send my fed/state return copies to the TT, at that point, he sends out a notice to all the creditors that there are now funds available, and they have 4 weeks from that point to file claims? I was discharged back in Dec, but there were no claims by the discharge date.

[justbroke]

Oh.. this is what I did not know. Let me get this straight. So, once I send my fed/state return copies to the TT, at that point, he sends out a notice to all the creditors that there are now funds available, and they have 4 weeks from that point to file claims? I was discharged back in Dec, but there were no claims by the discharge date.

The discharge bar date and the claims bar date are two separate dates. The "claims bar date" is set automatically on an "asset" case and I believe it's 90-days past the 341 Meeting of Creditors for a chapter 7. This is why a Trustee must make an asset determination quickly.

[LSUTiger32]

Oh.. this is what I did not know. Let me get this straight. So, once I send my fed/state return copies to the TT, at that point, he sends out a notice to all the creditors that there are now funds available, and they have 4 weeks from that point to file claims? I was discharged back in Dec, but there were no claims by the discharge date.

Yeah this is a little different than the claims pre-discharge. Once they make you an asset case, they send out paperwork letting your creditors know that now there will be some proceeds from the estate and there is a claim form attached that the creditor must fill out and return. They have 90 days from the date it was mailed sadly enough. Therefore they have in my case until 3/22/10 (guess it's more like 5 more weeks). At this point nothing has been added to my case, so I don't believe any creditor has filed the paperwork.

[LSUTiger32]

Yes, claims must be filed in order for unsecured creditors to get a share of the proceeds. If enough file that would consume the entire refund, then the refund, less the Trustee's commission, goes to the unsecured creditors that did file. The refund is split pro rata between those that filed.

For example, if your refund is $4K and you have $50K of unsecured debt, but only two creditors totaling $2K file, then the Trustee would get his $1K, plus the two creditors would get $2K, and you'd receive the rest. However, if those two creditors were each $5K, then the Trustee would get $1K, then the two creditors, that did file, would get $2K each. You would get nothing. The only real way to get some of it back, is if no creditor files, unless the creditors that do file are relatively small.

They said that they have a formula based on when you filed that gives me a portion of the refund regardless of claims so hopefully that is the case. So if no claims are filed, he will take his percentage and the rest would come back to me?

[ChaseDidThis]

They said that they have a formula based on when you filed that gives me a portion of the refund regardless of claims so hopefully that is the case. So if no claims are filed, he will take his percentage and the rest would come back to me?

That was the case for me, filed in September, Trustee just let me know he wants 67% of my refund.

[LSUTiger32]

Does anyone know if it would show up in PACER as a claim received? Is that something they would scan into the record? If so, no creditors have filed a claim as of yet but I am not sure if that would be something that would show in there and change the last filing date. Right now it is still from December.

[dspii]

Does anyone know if it would show up in PACER as a claim received? Is that something they would scan into the record? If so, no creditors have filed a claim as of yet but I am not sure if that would be something that would show in there and change the last filing date. Right now it is still from December.

Yes, it will show up in your "Claims Register" and the date of last filing will not change. This register will list your creditors that filed a claim, with proof of the amount, you'll see the link to their document. Out of the $85k I had discharged, $65k of that filed claims (you'll see the totals at the bottom).