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Filing 1040 with Ch. 7 Case Open

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    Filing 1040 with Ch. 7 Case Open

    I received my discharge several months ago, after filing Ch 7 late last year.
    The trustee has not declared the case asset or no asset, and the case remains open. I need to file my taxes (I have filed an extension) in order to complete financial aid applications for my kids' college financial aid packages.
    Can anyone explain how a 1040 is completed with a case open? The trustee has not filed a 1041. I realize all credits, attributes, etc. currently reside in the estate. Therefore, is my 1040 return for 2009 just a simple compilation of my W2 income and normal deductions? Any help here is greatly appreciated.

    #2
    There are some additional complications from this situation, since some of the options on your tax return will depend on whether you are or are not an asset case. I would have your attorney file a Motion to Compel Abandonment. That should get the trustee to finish up quickly.
    C7 Filed: 2009-11-06 | 341: 2009-12-14: | DISCHARGED: 2010-02-09
    Condo: Walked away due to 2nd mortgage intransigence; 1st foreclosed. Now totally DEBT FREE!!

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      #3
      Originally posted by LetsClose View Post
      I received my discharge several months ago, after filing Ch 7 late last year.
      The trustee has not declared the case asset or no asset, and the case remains open. I need to file my taxes (I have filed an extension) in order to complete financial aid applications for my kids' college financial aid packages.
      Can anyone explain how a 1040 is completed with a case open? The trustee has not filed a 1041. I realize all credits, attributes, etc. currently reside in the estate. Therefore, is my 1040 return for 2009 just a simple compilation of my W2 income and normal deductions? Any help here is greatly appreciated.
      Unless you have something out of the ordinary in your tax scenario, you can file your tax return like you normally would. The fact that BK is still open is largely irrelevant.

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        #4
        There are some possible attributes, which I believe that the trustee may not be aware of. However, even if the trustee is not aware of them, they are part of the estate at this point, correct? So should I file as if they do not exist for me right now. If they are ultimately abandoned, then I would get them back, and use them in the future, I guess.

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          #5
          Originally posted by LetsClose View Post
          There are some possible attributes, which I believe that the trustee may not be aware of. However, even if the trustee is not aware of them, they are part of the estate at this point, correct? So should I file as if they do not exist for me right now. If they are ultimately abandoned, then I would get them back, and use them in the future, I guess.
          Probably not if you filed your BK last year. The BK estate is created on the date of filing. Unless the tax attributes can be carried back (like a loss carry back), to prior years allowing for a refund for prior tax years, then it is unlikely there is anything the trustee can do. Also, it really doesn't matter, you need to file the tax return, just do it, and get it over with.

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