Notice of Possible Dividends in Colorado

[regalar]

Had our 341 meeting on 1-12-2011, trustee wants our tax refund this year, it will be about $2500, $1700 earned income credit, $350 childs tax credit, $320 making work pay credit, $175 fed withholding. We are both on SSDI and LTD, pacer docket report now shows on #13 "Stipulation for Turnover of 2010 Tax Return" and on #14 "Notice of Possible dividends", not sure if #14 is related to #13. Also I need to buy a new kitchen stove, Will I get in trouble if I buy one now before my discharge, if I ever get one.

Ron

[21bwife]

I might not be much help, but why weren't you able to exempt your tax refund? My lawyer exempted up to 10,000 of mine and said that it was allowed in Colorado. I'm 7 days away from my discharge date and nothing has been objected so far(knock on wood). Maybe you should check just to make sure. We are expecting a 9,000 dollar refund from Federal and 1600 from State. The trustee didn't metion our tax return or refund during our 341.

I'm not an expert at this and really have no clue about it at all. Just stating my personal experience. Hopefully someone else has much better information for you.

[chicagoannie]

Had our 341 meeting on 1-12-2011, trustee wants our tax refund this year, it will be about $2500, $1700 earned income credit, $350 childs tax credit, $320 making work pay credit, $175 fed withholding. We are both on SSDI and LTD, pacer docket report now shows on #13 "Stipulation for Turnover of 2010 Tax Return" and on #14 "Notice of Possible dividends", not sure if #14 is related to #13. Also I need to buy a new kitchen stove, Will I get in trouble if I buy one now before my discharge, if I ever get one.

Ron

Ron - I just read the Colo state exemptions and (o) clearly states the EIC and child tax credit portion of your tax refund are exempt. Sorry I couldn't copy the line...computer is acting up.

[chicagoannie]

P.S. I listed my future tax refund on my schedules along with the statute that deemed the EIC and CTC exempt (they are also hands-off in Illinois!)

[HHM]

This sounds like a Schedule problem? Do you have an attorney or are you pro se?

You you will need to go back and amend your petition (schedule of assets) and include the tax refund as an asset and claim the appropriate exemption. There is no explicit exemption for a tax refund, it depends on the nature of the refund, so things like child tax credit are exempt, you can use the wage exemption (75%) to protect the regular portion. etc.

[regalar]

Thanks everybody, I think the trustee is going to see how much he can take when he gets my 2010 income tax copy, hopefully he won't take the earned icome tax credit (1700), but just a bummer now I have to wait for for this to get worked out. Anybody have any idea about the stove, could i buy it know or should I wait?

thanks,

Ron

[JoeBankrupt33]

Ron,

I went through this two years ago and the law doesn't quite match the bankruptcy court's interpretation. Anyhow, you can exempt all of the EIC and you can exempt only the "Additional Child Tax Credit" (line 65 of form 1040). Any amount that is on line 51 of form 1040 is not exempt. You cannot protect the rest of it with the 75% wage exemption.

I recommend ammending your exemptions and specifically listing the EIC and Additional CTC.

I realize this post is a month old, but maybe this can still help you or someone else.

Joe

[regalar]

Thanks Joe, that is exactly what i got to keep the EIC and child tax credit, Trustee just figured it out the other day.