What to do? Tax question and Bankruptcy Counseling

[mstomica]

I filed Chapter 7 9/29/2009 341 meeting 11/13/09......

I have tried to reach my attorney but she hasn't returned any of my calls.


There are several things that I am finding out now from a friend because I wasn't told this before I filed. I wasn't aware that my federal refund would be taken by my trustee.

1st question. Does the trustee have the right to take the refund after the bankrupty is discharged?

2nd question After the 341 meeting my attorney said basically it was over and just wait for my discharged papers.

Again, wasn't aware that I was suppose to do a post bankrupcty counseling. I haven't done that yet, does that have an effect on my discharge?

[HHM]

1. Depends. About 10 days after your trustee meeting, the trustee is to file a preliminary report and designate the case either asset or no asset case. If he designated your case a no asset case and you received your discharge, you are pretty much in the clear.

2. Get that course DONE, yesterday. Go online and get it done. If you don't do it, your case will be dismissed.

[DebtHater]

For question # 1, according to my lawyer if you filed before the new year then they won't touch 2009 taxes. If you filed after the new year then they can. This is something that you should seek your own legal advise about as it could vary depending on the district.

#2 You need to do a Debtor Education course after filing but prior to discharge. Failure to do so will dismiss your case. There are several websites that offer them. Mine cost about $15.00.

[HHM]

For question # 1, according to my lawyer if you filed before the new year then they won't touch 2009 taxes. If you filed after the new year then they can. This is something that you should seek your own legal advise about as it could vary depending on the district.

#2 You need to do a Debtor Education course after filing but prior to discharge. Failure to do so will dismiss your case. There are several websites that offer them. Mine cost about $15.00.

As to #1, this issue is very state specific. Some states have exemptions for tax refunds, other don't.

Keep in mind, the majority view is that you earn your tax refund incrementally throughout the year. You only "liquidate" it when you file your tax return. For example, if you file BK in November 2009, the trustee is entitled to 11 months worth your tax refund (minus any exempt portion).

[CCsAreEvil]

In our case, the T said to the group of us (about 6 different parties in the room scheduled for the next 30-45 mins) that our refund was property of the UST. We were all required to send in a copy of our 2009 returns when we do them. We also need to send them our refund checks (I'm assuming both federal and state). This was also instructed to us in writing.

Of course, we are in AZ where there appears to be NO laws exempting the refund from the BK. My atty confirmed that there's nothing I can do and they'll most likely take 2/3s of our return.

My case has been discharged in Dec 2009. However, I find it interesting that even if you factor in our 09 refund amount, we would STILL be well under the median for the 6 months prior to filing (and full 2009 if you want to count that). I think someone in a previous thread had noted this same fact that the refund amount should be considered untouchable if it still puts you below the median. You'd think the UST wouldn't take any of the refund since we will still be below the median... go figure. Loophole in the system? I can only shrug at that.

[LimpDisc]

I have a friend who turned in his 2nd counseling class certificate late and the court gave him an extension to get it done. His anticipated discharge ended up being delayed by 45 days or so.

As already suggested, get it done yesterday.

[mstomica]

Thanks

I did see legal advice, that is why I had a lawyer. As I stated she didn't return my calls, so I was asking if anyone could shed some light on the case. Thanks to everyone!