Learned something today about Taxes

[SinkingFast]

About a month after our 341, our Trustee sent us a note about our income taxes. Saying some thing to the effect of the Trustee would not close our case until we filed our taxes and submitted copies to him. He wanted to remind us this was a condition of our BK.

I found out today, that paper we signed allows the Trustee to incercept our refund checks. Instead of sending the refunds to us, the IRS and the State will send our checks directly to the Trustee. If the Trustee decided to go for our refund, he keep the checks. If the Trustee decides it isn't worth the hassle, he will send the original checks to use.

That's for both State and Federal returns.

[CATCHMEIFYOUCAN]

Yeah the Trustee has a right to the refund as it is disposable income to pay back the creditors, for example when i was in ch13 the trustee expected any and all refunds from state and federal, he would only leave me with $250 if i received a refund over that amount. IF it was $250 or less he wouldn't touch it. Every Trustee in every state is different though, most ask for any/all refunds some dont even bother with it.

Best Wishes, others will chime in here with their views, Catchmeifyoucan

[JollyGG]

We have discovered the same thing. We have enough exemption to cover most of our return. I'm hoping the trustee gets our return to us in a timely manner, but I really doubt that will happen.