What are guidelines for tax refunds?

[twuoo]

I'm expecting a tax refund. Can the trustee take the refund if I get it before I file bk? I'm not planning on filing until around Sept/Oct.

Then if they can take the money, should I just spend it to buy necessary things like home improvements or fix up the car?

Also, would it be a preferential payment if i prepaid some taxes with the refund money? I have a feeling I might be owning next year.

Thanks!

[SinkingFast]

If you don't file until Sept/Oct, the Trustee isn't gonna be interested in your refund from this spring. The Trustee might be interested in next spring's refund.

You file in the fall, your 341 Meeting is gonna be in October/November, maybe even early December. The Trustee can take a prorated portion of next year's refund. 9/12ths for a September filing. 10/12ths for an October filing.

If you pay some from this year's refund toward next year's filing, you may be accidentally putting money into the Trustee's pocket.

To see how you're doing on taxes for this year, check out this IRS calculator:

http://www.irs.gov/individuals/artic...=96196,00.html

[twuoo]

Thanks for that tip. I know I'll owe some taxes. So I guess maybe I'll just have to bite the bullet and "pay up" next year.

[CATCHMEIFYOUCAN]

I got a state refund I think MARCH of 2006. About $1190 GONE, SPENT, GAMBLED, PAID SOME BILLS. I filed Bk end of JULY. No mention as to what happened with THAT refund. However since I first started out with Ch13, the Trustee was expecting any and all refunds for the following 5 years! If the the amount of refund was over $250 it was HIS.

Best of Luck, CatchMeIfYouCan