Federal tax return?

[overourheads]

We filed for chap 7 last May and it was discharged in September. At our initial lawyer meeting, our lawyer mentioned we'd have to forfeit 50% of our tax return as a penalty for filing for bk.

I've been working on our taxes lately but I'm not sure if there is anything I should be getting in the mail from the court trustee or any of the creditors. I did a google search and from what I found on the irs website, we're supposed to file a trustee return for the debts discharged in the bk but that doesn't seem right. I also can't find anything about the 50% forfeit of the return.

None of our debts were for taxes. A car, CC and private student loans. The car was taken by the bank and we bought a new one to start to rebuild. Should I just go to a professional tax preparer this year? I use turbo tax in the past but is this a situation where we should just suck it up and pay a professional?

We're in NV.

[JoeBankrupt33]

There's no reason to use a professional preparer. You file your taxes just as you normally would. But, if the return was not exempted, then you could be made to turn over the prorated amount of the return that was for the time before filing. So, if you filed at the end of May, the trustee could potentially want 5/12 of your return.

It is possible also that the trustee is not interested or has determined you are a no asset case.

[overourheads]

We were determined to be a no asset case so does that mean we'll get our whole return?

[JoeBankrupt33]

I don't really know. I was an asset case from the get go. Hopefully someone else can chime in.

[Llelxon]

I would imagine that your trustee would have let you know by now if you needed to submit a copy of your taxes. Our trustee told us at the 341 meeting he would be wanting to see them and sent a letter to us in mid-late January confirming that. We were changed to an asset case today after submitting a copy of our taxes last week.

[CCsAreEvil]

Is your case still "open"? If it is closed, I think you are scott free.

[aces67]

Maybe what he meant by 50% was since you filed BK mid year technically the trustee could take 1/2 of your return if he wanted to. But, your lawyer should have been able to exempt it for you.

If your case is closed though it may not matter either way. Our case was closed by August of last year and our return is now ours to keep.

I'd call and double check with your lawyer. You can file them yourself though. It will be the same as your normal return.

[overourheads]

Per PACER, our case is closed as of 9/21/09 and discharged 9/17/09. Haven't heard a peep from anyone and our lawyer isn't the easiest to get ahold of. Wish I'd gone to a smaller firm.