DELAY In refund? What does this mean?

[bktmom28]

We did ask her about it, but from what I understand, it is different in OR.

[Tweeby]

We filed for ch7 on 11/30/09 and had our 341 on 1/25/10. We did not know how much of a refund we would get and when the trustee asked about it we said we didn't know but expected it to be about the same as past years, $3-4,000. Trustee asked for a copy of the return when we filed.

There were new credits this year for us plus we made less than past years so had a high EIC credit. We normally don't qualify for EIC. Refund of almost $7,000. I gave the returns to our lawyer and she said the trustee MAY take some and she will give me an estimate in about a week and we will get a definate answer from the trustee in about 30 to 60 days.

We received the refund today, DD into our account. Will be opening up a saving account to 'park' the money until we hear from the trustee. EIC is exempt in our State. Not sure about the additional child tax credit or the new making work pay credit.

[mtbc]

The way it went for us is,

1. we owe IRS $14,500, listed on creditor matrix, they stopped sending monthly installation payment coupons after we filed
2. also owe plenty on student loans, they normally swallow any refund we would have got even if we didn't owe the IRS
3. we honestly expected to owe taxes (we had $6,000 income completely untaxed), so didn't list it as an asset, didn't expect a refund, and told trustee as much
4. had our 341, trustee abandoned assets
5. did taxes, discover we get a refund, and filed
6. got refund direct-deposited promptly

I don't know if we're actually out of the woods but it seems as though we might be.

(We have plenty of room in exemptions; if it looked like becoming an issue I could easily add the refund to Schedules B and C if need be.)

[JKPDX]

I'm in Oregon as well (as the OP). My discharge date was 2/9 (although nothing is showing yet). The trustee at my 341 said he wanted to see my tax returns and to "not spend the refund." I read from several folks that there was a delay or re-routing of your tax refund, so that is what I expected. I filed my returns on 2/2 and had the money in my bank account on 2/10. Even the state refund, which normally taxes FOREVER, is hitting my account Tuesday. Now I just wait for the trustee to determine how much he wants.

When I sent the tax returns to my BK attorney, I asked her if I had made a mistake in having my refund direct deposited (I was thinking it would be best because of timeliness). She said most trustees get upset when your refund is direct deposited (I guess some people don't send a check to the trustee) but she said my trustee didn't care.

[Llelxon]

Trustee wants a good portion of you refund and mine was delayed as well per the IRS website. Funny I sent a copy of the return to the Trustee and he responded with a letter to turn it over when received. If he put a hold on it, why bother sending me the letter to turn it over to him. Kind of silly I think, but it doesn't really matter I guess as long as I get my portion in the end.

[chriselle]

Is there a way to check if the trustee put a freeze on my future tax refund? He has not mentioned anything on my 341 about it.

[LSUTiger32]

Is there a way to check if the trustee put a freeze on my future tax refund? He has not mentioned anything on my 341 about it.

I don't believe there is. It's all going to depend on your location and TT. Mine just gave me a letter basically telling me he trusted me to turn over the paper returns and checks. It just says that if I don't my discharge will be revoked.

[LSUTiger32]

I'm in Oregon as well (as the OP). My discharge date was 2/9 (although nothing is showing yet). The trustee at my 341 said he wanted to see my tax returns and to "not spend the refund." I read from several folks that there was a delay or re-routing of your tax refund, so that is what I expected. I filed my returns on 2/2 and had the money in my bank account on 2/10. Even the state refund, which normally taxes FOREVER, is hitting my account Tuesday. Now I just wait for the trustee to determine how much he wants.

When I sent the tax returns to my BK attorney, I asked her if I had made a mistake in having my refund direct deposited (I was thinking it would be best because of timeliness). She said most trustees get upset when your refund is direct deposited (I guess some people don't send a check to the trustee) but she said my trustee didn't care.

Wow, you are very lucky. Everything is the same way with mine, but they were very clear in telling me NOT to do direct deposit. As a matter of fact, they also do not want us to endorse the checks when they come.

[waitinginmo]

My Trustee said that I just could not do a "loan" refund from HR Block. Plus I couldnt do the Debit Card refund. I could however do Direct Deposit or Check. Funny she still requested it be sent to her. I am sure it depends on your trustee. They all seem to work their own way. I dont mind that she had it go to her first. She could have had my refund and I wouldnt complain simply because I am greatful to just be out from all the debt I had. I would give up 2400 to someone anyday if it got me out from under 90,000 in debt!

[LSUTiger32]

. I would give up 2400 to someone anyday if it got me out from under 90,000 in debt!

Amen brother! I will gladly be giving up my $4,000 refund to get out of what I got out of. While I wish things would have turned out differently, Katrina and Gustav was just too much for me to handle. At least now we have a chance again financially.

[Bell30656]

I filed CH7 in December of 2008. It was a no asset case, the trustee didn't bother to go after my return. I filed my taxes in February and they went straight through. Sometimes I guess I get lucky.

[ecsclb1724]

we filed 12/2009 and exempted our tax refund, we filed our taxes and got it direct deposited on the correct date. Did everyone EXEMPT their refund?

[waitinginmo]

yes my refund was exempted but my trustee wanted to make sure that if we got more than 2300 she may have wanted to take some.

[CCsAreEvil]

Again, not everyone can exempt the 2009 refund. It depends on your state. As far as I know, Arizona doesn't let you do that.

But if your state allows you to do that, of course, make sure you exempt what you can with your refund!

[CCsAreEvil]

I'm such a procrastinator. Even though I was receiving a refund, I just waited until April to do it. Just like some of you, doing the irs check online shows there's a delay in processing which obviously means the refund will be handed over to the TT. I'm just hoping the TT doesn't take too long to give me my scraps portion of my refund.

So, any insight on how long it took your TTs to hand your due portion of your refund? Do they just send you a gov't check?