Chapter 7 and 2009 Tax Refund

[mdk2006]

Hello,

We filed for Chapter 7 on November 13, 2009
Meeting 341 was December 29, 2009
We are waiting for Discharge, which should come in March 2010 sometime.

My questions, if anyone can please help!

1099Cs...if these come, will I need to file them with my 2009 taxes, or 2010 taxes (next year)....?? Have not received any as of yet.

Tax Refund....they did not want any of our 2008 return, they did look at it cause it was high, but we did not have much disposable income to speak of at our 341, so they dismissed that.

If we file taxes before discharge, and get our return, which will be a nice chunk of change, can they take it???

Or should I wait until we discharge to file?

(We REALLY need the money, we are walking away from home, and we need it to rent!)

Thanks to anyone who can help me!!!!!

[OhioFiler]

Consult your attorney.

[Mi Bankruptcy]

They can always take it if you did not exempt it when you filed. However, your attorney should be able to tell you what typically happens in your district. Some trustees want it, some don't.

[JJ888]

When I met my attorney for my 341 yesterday, I asked about the possible tax refund I will get for 2009. The attorney said if the Trustee asked for it, we will file for an exemption. The Trustee did not ask for it. So I guess it depends on the Trustee. I got 8K for 2008 and probably getting the same this year or less. Good luck my friend.

[mdk2006]

Thanks JJ888, they asked about our 2008 return, which was high, and like I said our attorney said....not a large amount of disposable income in our account right at the time....so I am thinking they will not take it.

When do you plan to file JJ? We should discharge around 3/1/09....I am wondering if we should wait until after or if we can do it now.....

[benny]

income tax.

just doing some research and came across this forum. I am wondering if we can send a hardship letter to the trustee? We are suppose to turn our refund check over to the trustee as soon as we get it. we filed the end of sept 2009. Oue refund should be around 10k we have 5 kids and really need this money to keep our head above water. thanks in advance

[JJ888]

Thanks JJ888, they asked about our 2008 return, which was high, and like I said our attorney said....not a large amount of disposable income in our account right at the time....so I am thinking they will not take it.

When do you plan to file JJ? We should discharge around 3/1/09....I am wondering if we should wait until after or if we can do it now.....

I am doing my return as soon as all documents are complete. Still waiting for my 1st mortgage interest document. Once I received this document I will do my 2009 return.

[readytofile]

We exempted our future tax return when we filed. I allowed for 2k exemption(cash on hand) in a return. Talk to your lawyer about exempting it.

[benny]

next step

We exempted our future tax return when we filed. I allowed for 2k exemption(cash on hand) in a return. Talk to your lawyer about exempting it.

yes that was my next step. I wonder why the lawyer hadnt mentioned this to me?

thanks

[readytofile]

My lawyer didn't really seem concerned about it, but after reading up on this forum I decided to push the issue that it be listed. I had so much left over in exemptions I could've used that they probably wouldn't have cared if it was 10k, but I wanted to play it safe. Also know that each trustee is different and so I covered my butt. My trustee was super nice and the lawyer knew her so it was no big deal at all.

[benny]

too late

My lawyer didn't really seem concerned about it, but after reading up on this forum I decided to push the issue that it be listed. I had so much left over in exemptions I could've used that they probably wouldn't have cared if it was 10k, but I wanted to play it safe. Also know that each trustee is different and so I covered my butt. My trustee was super nice and the lawyer knew her so it was no big deal at all.

i wonder if its too late, or if we can do it now? i suppose these are questions for the lawyer. just trying to gain some info before i call. thanks

[readytofile]

Well you should be able to amend it if your lawyer thinks you should.

[benny]

update

Well you should be able to amend it if your lawyer thinks you should.

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

[Mi Bankruptcy]

I also did my research. My attorney told me they didn't take returns. However, I found a case in Michigan where a couple got back a return and she spent it. The trustee came after them for the money. It ended up going in front of the judge and the judge ruled for the trustee because they did not exempt it. I told my attorney to exempt it, he said they never take it, well then you should not have a problem exempting it. DOH!!

[mtbc]

Ah, that's interesting, I'd guessed you might simply be able to amend your exemptions if the trustee showed signs of coming after it, but maybe it's important to do it preemptively then.