Need advice! Will trustee care that we file taxes differently this year?

[lalap123]

I filed chapter 7 individually and just had my 341 on Monday. At that time I hadn't filed my taxes, but the trustee mentioned that he wants me to send a copy of the return to my attorney once I've filed so that he can see how much of a refund I'm entitled to.

Normally my husband and I filed our taxes jointly, however, this year I want to file separately. In the end we'd almost break even, since what we'd be getting back filing jointly is almost equal to the amount that my husband will get back filing separately (after the trustee takes my half of course). However, if we filed jointly the trustee would be getting a nice percentage.

Obviously the trustee has copies of our tax returns for the past two years and can see that we file jointly. Will he question my individual filing this year and suspect that we are keeping him from potentially getting money? Could this raise problems in my case?

I'm not really trying to keep the trustee from getting his money - in the end our decision to file separately is due to 1) fear that my husband's portion of the refund will be held up for months while the trustee decides how much he wants and 2) fear that the trustee may decide he wants the whole thing and we'll end up in litigation for it.

My attorney also said that if we do file individually that we need to make sure to have my husband's refund deposited into an account with his name only. Does anyone know why?

[lalap123]

Also, would it be okay for my husband to go ahead and use his refund? He would be using it all for household expenses, plus putting something down on his credit card.

[coolmom04]

My attorney also said that if we do file individually that we need to make sure to have my husband's refund deposited into an account with his name only. Does anyone know why?

I don't know the answers to your other questions, but as far as this one goes - my attorney said that once you start mixing all the money together in joint accounts, it's hard to really "prove" what was spent out of each account holders' money. Does that make sense? We're facing a little bit of a problem with this b/c we filed jointly and had the refund deposited into our joint account, but moved 2K into HIS savings account. He's the one filing. We're still hoping to claim half of it is legally mine, but we're facing the issue of 1) we mixed money together in the joint account and 2) all the 2K is in his individual savings account.

Lots of luck to you.

[coolmom04]

Also, would it be okay for my husband to go ahead and use his refund? He would be using it all for household expenses, plus putting something down on his credit card.

Forgot to respond to this in my last post - my attorney told me I could spend my half of the refund on whatever I wanted as long as it wasn't luxury items of course. And I was also told I could spend it on whatever debts I have - I didn't have to disclose that stuff. So, I would guess the situation would be the same for your husband since he isn't filing either.

Hopefully others will chime in and help you out in case I am wrong

[LALADY]

Not spending the tax refund until I'm absolutely certain the Ch7 isn't converted over to a Ch13. No way am I going to be blindsighted on that one.

[lalap123]

I thought the problem with mixing money was only before filing - to show what money went to which expenses. After filing I don't see why it would be an issue if my husband's tax refund went into our joint account. Any other thoughts??