Tax Refund Question

[onthefence]

Hello All-

I just found out from our accountant that we are receiving both a federal and state refund for 2009 (we filed an extension as DH was unemployed all 2009 and thought we would have to pay since we had nothing withheld from his UI payments). Fed approx $2100, state approx $450. Normally that would be great news, except we are getting ready to pay our attorney and file for CH 7 BK. We are way below the median income for our area - should I be worried? Would it be best to wait and file? Or will it not matter since we are below the median?

Thanks in advance!
OTF

[SMinGA]

Depends on your state's exemptions. AT this point these are assets. If you have exemptions to cover them, then you should be fine. If no exemptions - you may want to wait and get the $, then spend it on things you need.

[onthefence]

Thanks SM!

I think we would be able to cover it with an exemption, but I am waiting to hear back from the attorney.

[tobee43]

we did our taxes a couple months before filing and rec'd a refund of 10k....our atty told us to spend it asap....we did....we turned in our 1040 for 2009 and the trustee didn't say a peep...we couldn't believe it...really.