Chapter 7 and 2009 Tax Refund

[mdk2006]

BUT, if you file AFTER discharge...and all is closed and done, would that make a difference?
I am thinking we will probably just wait to file until after discharge.

However, the amount we are getting back is under the exempted amount of cash allowed in our state....though we do have a few thousand in our checking now....so, combine it together and they would have ability to take the difference away from us.

CRAP...it just never ends.

ALSO, what about those 1099C?? Have not gotten any.....like I said we will not discharge until 2010 though filed in 2009....will the 1099c be something I need to file NEXT year, on 2010 return?

[benny]

update

ill update the forum tomorrow after i talk to them. wish me luck and thanks for all your help.

well i just talked to the lawyers office, not directly to my lawyer, shes gonna call me back. they did say that i took the hme exemption and i cant take both, and i need to send a copy of my return to the trustee and leave it up to her. so it does sound like there is a possibility that the trustee could let us keep it. I think ill send some kind of hardship letter along with the tax return, i guess it cant hurt.

ill let you know what my lawyer says

[readytofile]

BUT, if you file AFTER discharge...and all is closed and done, would that make a difference?
I am thinking we will probably just wait to file until after discharge.

However, the amount we are getting back is under the exempted amount of cash allowed in our state....though we do have a few thousand in our checking now....so, combine it together and they would have ability to take the difference away from us.

CRAP...it just never ends.

ALSO, what about those 1099C?? Have not gotten any.....like I said we will not discharge until 2010 though filed in 2009....will the 1099c be something I need to file NEXT year, on 2010 return?

No, it makes no difference. Any money you get back from returns is from money made IN 2009, not future earnings. If your trustee is looking to get money from your returns(and they will look at your tax returns to see what you normally get back) you better hope you exempted it. They can take it and there would be nothing you could do about it after the fact.

Just my opinion and all

[benny]

Pacer

what is this Pacer i keep seeing that people are checking?

[Mi Bankruptcy]

what is this Pacer i keep seeing that people are checking?

here is a site I read and looked at the screen shots

http://michiganbankruptcy.wordpress.com/2009/03/20/using-pacer-reviewing-bankruptcy-case/

[mdk2006]

CASH on hand exemption in Illinois is 8000. The return is just under this. Our property exemptions total around 2000. (we have NO equity in home!)....From the research I am doing, in Illinois we can keep $8000 cash as a couple. They can't take the WHOLE return...It is part of our income for 2009 yes, but looking at our means test, we have a whole DOLLAR left as disposable income after our expenses every month....this HAS to count for something. I would think anything in our account after filing above 8000 they could claim and take, but if the CASH exemption in Illinois is $8000, then we should be able to keep the majority of our return......no????

[Mi Bankruptcy]

Most likely if your attorney did not tell you or the trustee did not tell you they want the return then you will keep it. However, if you did not exempt it they could come back and get it. Example of what we did

We are CH7 no asset with plenty of room left in our exemptions.

Schedule B
Anticipated 2008 Tax return $6,000

On Schedule C We listed:

We put "Anticipated 2008 Tax Return"
(Husb)11 U.S.C. 522(d)(5) $3,000
(Wife)11 U.S.C 522(d)(5) $3,000

Now.. if the trustee was to come after use we could point to our BK schedules and say we exempted it because we had enough left over.

[readytofile]

The point of bankruptcy is that you're supposed to walk away with nothing(sorta). So it really doesn't matter if you have only one dollar left. You can keep your tax return as long as you file it all as your cash exemption. I wouldn't chance just hoping that they don't take it.