Tax rebate

[woohoogirl]

What effect will this have on bakruptcy filers? Can and will the trustee go after this too?

[woeisme]

probably depends on how you trustee deals with tax returns in general. Mine let's me keep my return (well, anything under $6500, and I've never had a return near that big). Some take every penny, so would probably go after the tax rebate too. Like everything with bankruptcy, it's unequal protection under the law, and seems very unfair to some while decent to others.

[FreshLikeADaisy]

Woohoogirl, your best bet is to file taxes and spend that return on necessities and undischargeable debt prior to filing. It really does depend on the trustee, and also the location: some states do not take the tax return as an asset during bankruptcy, though most do.

But if you ain't got it, they can't take it.

[mesa777]

I am going to use mine to pool with my neighbors to buy lottery tickets!!! (: ... ya right.. this rebate deal is a JOKE to the American public!!!!

[woohoogirl]

Woohoogirl, your best bet is to file taxes and spend that return on necessities and undischargeable debt prior to filing. It really does depend on the trustee, and also the location: some states do not take the tax return as an asset during bankruptcy, though most do.

But if you ain't got it, they can't take it.

I was going to do that with my refund. I was wondering about The Shrub's new tax rebate they talked about today.

[BKcrazy]

I most likely won't a refund because I've been an independent contractor for so long. And I stopped paying quarterlies in 05.

[rilbrianne]

I think it also depends on your situation. We don't make much at all, well below median for Michigan. We had no assets to give but we usually get a pretty high refund, around $4500-$6000. Our trustee showed no interest in it. I'm assuming because it seems heartless to strip a family of the money they use to get by.

Also depends on the trustee. What they normally feel about tax refunds. They are usually entitled to a portion but it depends on if the trustee really thinks it is worth taking.

You'll probably just have to wait and see.

[Flamingo]

What effect will this have on bakruptcy filers? Can and will the trustee go after this too?

You can bet it will affect those in Chapter 13 as both trustee and attorney know the individual or family will be receiving it, probably in late spring - they state the rebate will be about $800 for an individual and $1,600 for a family.

[familyof7]

what is the income bracket for this rebate or refund? What is the requirements to qualify for it? Do we have to apply for it or does it automatically come to us?

[CATCHMEIFYOUCAN]

My Trustee wanted all of my refund, he was never going to see - since I never have gotten a refund in 10 years (State of Va, btw). He was only going to let me keep $200, anything over was his and the creditors, and had I stayed in Ch13 in 2006 not only would I be paying the Trustee $800 a month but owing the IRS $5000 !

Well, since I converted to ch7, THIS year I see $4000 coming back to me. I decided to overpay on my gambling wins and it paid off! So I'll be throwing a little extra towards rent / car note etc. and than have a little fun too!

Catchmeifyoucan