So, I've filled out my Schedule B and C. I'm filing under the federal bankruptcy exemptions, which Michigan allows me to do, so I can use the unused homestead exemption as a wildcard exemption -- giving me a total of $11,200 to exempt any property with.
At first glance, I appear to have $2,705.28 in pending tax refunds coming that is over this exemption limit. I would like to file now, so unless I postpone filing, I can't get some of those refunds and spend them on ordinary and necessary expenses to reduce the balance I need to exempt. I would rather not postpone filing until I get the refunds.
So, I'm thinking about whether everything I applied the wildcard exemption to actually needs it, and whether I can shift anything into other categories.
Question 1 - On Schedule B item 3 "Security Deposits", I list the $705 on deposit for my apartment. Does this amount need to use up part of the wildcard exemption under S522(d)(5), so the trustee doesn't attempt making my landlord give them the deposit?
S522(d)(10)(A) exempts without limit "The debtor's right to receive . . . a social security benefit, unemployment compensation, or a local public assistance benefit". On Schedule B item 35 "Other", I list the monthly amount that I receive for food assistance of $305. I then exempt that amount on Schedule C using S522(d)(10)(A), under the interpretation that food assistance is a local public assistance benefit.
Question 2 - I got to thinking, that I could make an argument that part of my pending tax refunds are a local public assistance benefit as well. My State tax refunds are almost all due to Michigan's Property Tax Credit and Home Heating Credit. The Property Tax Credit is a credit based on the amount of rent I have paid for an apartment, and the Home Heating Credit is a credit based on the amount of heating expense I have incurred. I think that I could argue these are local public assistance benefits as well, and apply those portions of my State refund to S522(d)(10)(A) insetad of burning up part of my wildcard exemption under S522(d)(5). Anyone heard of this before? Anyone have an idea how a trustee would react to this?
Question 3 - If I'm not able to exempt the $2,705.28 that I'm over by, do I have any chance of being declared a no asset case -- or is the trustee almost guaranteed to go after that amount?
At first glance, I appear to have $2,705.28 in pending tax refunds coming that is over this exemption limit. I would like to file now, so unless I postpone filing, I can't get some of those refunds and spend them on ordinary and necessary expenses to reduce the balance I need to exempt. I would rather not postpone filing until I get the refunds.
So, I'm thinking about whether everything I applied the wildcard exemption to actually needs it, and whether I can shift anything into other categories.
Question 1 - On Schedule B item 3 "Security Deposits", I list the $705 on deposit for my apartment. Does this amount need to use up part of the wildcard exemption under S522(d)(5), so the trustee doesn't attempt making my landlord give them the deposit?
S522(d)(10)(A) exempts without limit "The debtor's right to receive . . . a social security benefit, unemployment compensation, or a local public assistance benefit". On Schedule B item 35 "Other", I list the monthly amount that I receive for food assistance of $305. I then exempt that amount on Schedule C using S522(d)(10)(A), under the interpretation that food assistance is a local public assistance benefit.
Question 2 - I got to thinking, that I could make an argument that part of my pending tax refunds are a local public assistance benefit as well. My State tax refunds are almost all due to Michigan's Property Tax Credit and Home Heating Credit. The Property Tax Credit is a credit based on the amount of rent I have paid for an apartment, and the Home Heating Credit is a credit based on the amount of heating expense I have incurred. I think that I could argue these are local public assistance benefits as well, and apply those portions of my State refund to S522(d)(10)(A) insetad of burning up part of my wildcard exemption under S522(d)(5). Anyone heard of this before? Anyone have an idea how a trustee would react to this?
Question 3 - If I'm not able to exempt the $2,705.28 that I'm over by, do I have any chance of being declared a no asset case -- or is the trustee almost guaranteed to go after that amount?
341: 05/15/08 
Discharge: 07/15/08 