New to Chapter 7 and some questions

[pilkerton21]

My husband and I filed a Chapter 13 back in April. We needed to file a Chapter 7, but due to husband filing a Chapter 7 previously we couldn't file it in April. We are now past the 8 year mark and 9 months into our 13. I want to dismiss the 13 and file a 7, but don't know the best time frame to do so.

We are filing our taxes next month and even though I don't withhold any Federal Taxes, we are still looking at getting back $6000-$7000. I have to pay $3000 to my parents for a loan they gave me while I was out on maternity leave (all unpaid) and my husband had a loan/cash advance from his employer that needs to be repaid $900, for a new transmission in his truck. When can we file a 7 and not have to worry about the tax money coming under review? I am also holding out enough $ from taxes to file the 7.

Any advice in going this route? Anyone done it before?

[Freddy03]

wow that's a big refund - not sure how it's so big if you don't have any withholding. I think with a refund that large a trustee would be interested in it.

[pilkerton21]

My husband still has Federal tax withheld from his check, he claims alimony paid to his ex, we have daycare expenses and claim 4 children.

[keepmine]

Check with your attorney and see if you have enough exemptions to cover this refund. If so, problem solved. File your bk and properly exempt the refund and after the bk is discharged, repay your parents.

[pilkerton21]

Not sure what is left of the Homestead after filing the 13, but we don't have a lot of assests so there should be some. Parents really need to be paid ASAP because my dad is retired and my mom was recently laid off, so they really need the $ back. Can I substitute the $3000 as paying on other smaller things/bills?

[pilkerton21]

If I filed 60-90 days after we get the refund, will that make a difference? Not sure how the 13 & 7 differ on tax refunds. I received about $6000 last year and filed the 13 after we received it and no one even batted an eye, but did make sure that my withholdings were adjusted.

[keepmine]

You just need to find out what sort of exemptions {if any will apply}.

If you pay your parents prior to filing, it's an insider transaction and if you file within 1 year your trustee could sue your parents for the return of the money.

[pilkerton21]

Emailing my attorney now about exemptions.

One year? What if they don't know that I paid it to them, is there any way around it?

[keepmine]

Emailing my attorney now about exemptions.

One year? What if they don't know that I paid it to them, is there any way around it?

Oh boy! You're going to be asked that question on your filing paperwork. I don't think anyone will suggest you perjure yourself.

[pilkerton21]

Thanks for the info.

[pilkerton21]

Ok, problem solved...I have enough exemptions to cover the tax refund. When would be the best time to dismiss the 13 and file the 7? I am looking to file taxes by the end of the month. I was looking to go ahead and contact the attorney to dismiss, he said it wouldn't take long.

[djransom]

You may want to speak with your attorney and make sure none of your creditors in your 13 asked for a relief from the initial stay in your chapter 13. I found out yesterday one of my creditors did in my 13 and now I have to wait till July to file my 7 again.

[pilkerton21]

You may want to speak with your attorney and make sure none of your creditors in your 13 asked for a relief from the initial stay in your chapter 13. I found out yesterday one of my creditors did in my 13 and now I have to wait till July to file my 7 again.

I just emailed my attorney about this, but after researching it looks like it only applies to secured debt. I only have my car payments secured and it is current.