Did you have your tax refund check direct deposited?

[bakergrl]

I just filled for BK and I have not had my 341. I was told by my lawyer that I can file my taxes at anytime. It looks like I am receiving more than they exempted. Is it okay to have the money direct deposited into my checking? Either way I have it sent it will be here before my 341 so I am not sure how to do this. Thanks!

[bakergrl]

bumping to see if okay to use direct deposit for tax refund after filing

[pnutbubbamom]

i can tell you what happened in our case. When we had our 341 (we are in Ohio), the trustee looked at our returns from last year and saw a very large refund (we had a lot of medical expenses and deductions last year, so we got a large refund; this year, not so much). He told us that we were required to turn over to him a copy of our bank statements on the day that we filed along with tax returns for 2009. We had requested direct deposit. The day came that it should have been deposited and it was not. called the irs and was told that the trustee put a hold on my refund so that it would be sent to him in case he wanted it for the creditors. Turns out, it wasn't as large as last year and he doesn't want it, but now we are in limbo; IRS says the trustee has it; trustee says they have not received it.....sigh.....

better luck to you, but don't be surprised if it is not directly deposited to you.

[bakergrl]

Would it be better to have it sent by check? Or will they take it and hold it either way?

[PoorGrammyinBK7]

We had ours direct deposited. The trustee made no mention of it at the 341. But, the IRS HELD our refund and we didn't get it until months later (in check form then). Big hassle. From what they told us, it was automatic - flagged because of BK. I don't know if it would have been better to have it sent by check or whether it would have still been held back.

[ItsJustMe]

We had ours direct deposited. The trustee made no mention of it at the 341. But, the IRS HELD our refund and we didn't get it until months later (in check form then). Big hassle. From what they told us, it was automatic - flagged because of BK. I don't know if it would have been better to have it sent by check or whether it would have still been held back.

Hmmm. That's interesting.

The trustee didn't say anything about ours. Our previous years returns all showed that we get very small returns or we owe a small amount. Our stubs would have shown that this year was the same story. We are getting a decent return thanks to the expanded education credits and it should be here next week. Hopefully it's not held up b/c of the BK.

[bakergrl]

I had it direct deposited and the Turbo Tax site says around the 19th so now the wait begins....lol. I am calling my lawyer Monday to see what I should expect and if I do get it if I can spend the difference or if I need to keep for the trustee.

[BobMango]

We had ours direct deposited. The trustee made no mention of it at the 341. But, the IRS HELD our refund and we didn't get it until months later (in check form then). Big hassle. From what they told us, it was automatic - flagged because of BK. I don't know if it would have been better to have it sent by check or whether it would have still been held back.

Did you file before you were discharged or after?

[BKDefender]

In Nevada the trustee's REQUIRE debtors to get a physical check mailed to them or they get rather upset. Even if the full amount is exempt, they still want to see the physical check to verify that it is what you said it was going to be.

If all of it is not exempt, they might want you to sign it over to them, they deposit it and write you a check for the exempt portion; or some of the trustees give you the option of writing them a check for the non-exempt portion.

--William

[backtoschool]

We had ours direct deposited. The trustee made no mention of it at the 341. But, the IRS HELD our refund and we didn't get it until months later (in check form then). Big hassle. From what they told us, it was automatic - flagged because of BK. I don't know if it would have been better to have it sent by check or whether it would have still been held back.

I filed my taxes electronically and just received my tax refund via direct deposit. The IRS did not hold my return in my district. My case is discharged but not closed.

[DebtHater]

I filed electronically and am due a refund to be direct deposited in the next week or two.

According to my attorney, because I filed for BK in 2009, my taxes for 2009 can't (or at least won't) be touched. Had I filed for BK in 2010, then the trustee would be interested in my refund.

[backtoschool]

I filed electronically and am due a refund to be direct deposited in the next week or two.

According to my attorney, because I filed for BK in 2009, my taxes for 2009 can't (or at least won't) be touched. Had I filed for BK in 2010, then the trustee would be interested in my refund.

This depends on district and trustee. Many trustees ask for future refunds, (ie, a 2009 refund filed in 2010) and will keep the case open as an asset case until the refund is processed. If a trustee is going to ask for your 2009 refund though, he/she most likely will do so at your 341, either to the whole group in the 341 room as a matter of general procedure, or to you individually as part of your hearing. How trustee's ask for refunds varies by district.

[SPalin]

At my 341 meeting the Trustee didn't say or question anything about anyone's tax return or future refund (Eastern District CA). I'm getting ready to file my tax return, but I'll probably wait a few more days for my discharge, as it should be February 8th, since I'm expecting a refund.

[BKDefender]

I filed electronically and am due a refund to be direct deposited in the next week or two.

According to my attorney, because I filed for BK in 2009, my taxes for 2009 can't (or at least won't) be touched. Had I filed for BK in 2010, then the trustee would be interested in my refund.

You really need to talk to your attorney again if that's what he/she said. i.e. make sure that's what he said.

It doesn't matter what year you file - the trustee has a claim for a pro-rated amount of your tax return based on when you actually filed BK. Your signature says you filed on December 11, 2009, that means on the day you filed you had a right to your tax refund earned up until that date, and that right reverts to the bankruptcy trustee unless you exempt it.

What I mean by that is that December 11, 2009, is the 345th day of the year (I think) which means that the trustee has a claim for 345/365ths of your tax refund (94.52%) and you need to exempt whatever you can. What you cannot exempt goes to the Trustee.

If your exemptions can cover your full tax return then you're good. But if not, you need to ask your attorney to elaborate and/or rethink his answer.

--William

[nokia123]

refund

i had mine sent directly to my checking account, i live in connecticut, i have no glue if the trustee will have something to say, i did have my 341 meeting yet, i can account for it all.