Stimulus rebate / tax refund - What happens to it in bankruptcy?

[jerzey]

Heard on the Radio..

If you used a Tax service and had their fee taken out of your refund before you received you direct deposit then your check will be mailed to you

Like i said that was on the radio cant say how true that is
but makes sense to me why me and other i know have not gotten their checks yet

[truckerswife]

We had our tax refund direct deposited. Our original date for stimulus deposit was suppose to be May 16th. I started worrying because we didn't get ours early like other people. I checked the IRS website Tuesday morning and it says that it will be deposited Friday.

[Bit_Image]

Got mine via mail today

[justplaintired]

Got ours today finally!! Was mailed on the 16th showed up on the 19th!! Yippie!!!

[Cali]

Congrats to those that have received them, hopefully you get to keep them.

[justplaintired]

I sure hope so Cali, we began spending ours last night. I went to a Dollar store and stocked up on some essentials. Snacks for the kids for summer break. Today, I will do more, going to take my car over and have the muffler fixed. I want it gone before we file so I am glad we finally got it!

[rickisbroke]

I just got done with my 341. The trustee didn't even ask about my tax refund or stimulus check. I got my refund in March and spent it and stimulus a couple weeks ago and spent it on bills. I think I'm clear!
Michigan here, by the way...oh and filed Chapter 7.

[Runnin on empty]

We still don't know what is going to happen with ours. We called our lawyer the other day about something else and were told by the paralegal that once we got the check to hold on to it and call them because I guess the lawyers in our area are fighting with the trustee over the Stimulus checks.

I'm not going to hold my breath, but that money would really be a huge help.

[Cali]

I hope you get to keep it.

We still don't know what is going to happen with ours. We called our lawyer the other day about something else and were told by the paralegal that once we got the check to hold on to it and call them because I guess the lawyers in our area are fighting with the trustee over the Stimulus checks.

I'm not going to hold my breath, but that money would really be a huge help.

[jerzey]

Stimulus linked worked finally

says $900
But our tax guys told us $1200
to be mailed by june 6th

wonder what gives?

[freshstart32]

So is anyone else still having issues in getting their check?

We filed on Oct. 15, 2007 and we were discharged in Feb. 2008. I have contacted our attorney numerous times as to whether our trustee wants it or not just to be on the safe side and he always says he will have to check on that. Our trustee kept all but $1,000 of our $4300 tax refunds we got back this year on our taxes and has never said anything about the economic stimulus refund. No letter from him or anything. Our case isn't closed though so I didn't know if he could still take money from us. It is discharged just not closed.

My problem is.....I have checked that website daily because we e-filed ours but we had to receive a paper check to turn over to the trustee once we got it and we filed them at the first of Feb. but that website keeps saying that they don't have any information for me. According to my husbands last 2 digits we should have ours no later than June 6th. We got a letter in the mail yesterday saying that we qualified for the refund and that we were getting $1800. On the back it says this:

Under Review

Your stimulus payment has been delayed for review. If you do not receive your stimulus payment or a notice explaining the delay within 60 days, call us at 1-866-234-2942.

Has anyone else gotten a notice like this?

Everyone else I know has gotten their refunds on time but they were all bank deposited. My sister is getting a check also and hers was supposed to be no later than May 23rd. What is going on? Is it just the paper checks or what? Is anyone else getting a paper check? Have you got yours yet? Would your trustee be able to get ahold of it before it was mailed to you is that why it could be delayed? We don't owe any taxes to the government....never do.

Just curious!

[leftyf]

Called trustee

I am still awaiting discharge. Filed in January. I called IRS and they were "holding" my check because they didn't know what to do with it...I'm guessing because of the refund order the trustee had placed on my 2007 refund. I called the trustee and they said they would fax the IRS a notice that would get my stimulus released to me...cool. They never mentioned keeping it at all.
Anyone who is waiting may want to call the trustee, although for some reason, I hate calling the trustee. I keep thinking that when I call it will cause them to look closer at my case, which is a border-line ch 7.

[laurannm]

So has anyone out there filed after receiving their stimulus, and was forced to show it as income on their schedule I?

[MotherTrucker]

Tax Refund and Stimulus payment both used to offset our taxes

Hi everyone,
Just wanted to share what happened with our tax refund and stimulus payment -

We had a tax refund of $503.00. We were interested to see how it would be handled as the IRS is the secured creditor getting paid the lion's share in our BK, they also have 1 tax year that is a priority claim with 1 year of property taxes and 1 month of mortgage arrearage making up the rest - 0% is going to the unsecured.

The IRS applied the tax refund to the priority claim, paid it off, and sent a check to the trustee for $64.04. No letter of explanation as to how the taxes were offset, just the check. When I called the IRS to find out exactly how they handled the refund, I found out something interesting that my attorney didn't tell me. The tax had been paid on this year (2005), but there was still a balance showing due of $65. plus some change. This amt. represents penalties and interest that is accruing and being compounded DAILY on this tax year. Once we get our discharge, this amt. will be abated and go away. BUT, if we were to convert to a Chapter 7, these penalties and interest would NOT be abated and would remain due! Something to consider for anyone who is converting to Chapter 7 and owes the IRS...

Ok, on to the stimulus payment. It will be used to offset back taxes (big surprise). So, we don't get it, BUT that's ok. It means more $ available for the mortgage arrearage that my lovely mortgage co. DIDN'T file a claim for. But, I digress...

Question: The IRS field rep. mentioned something about accelerating your discharge if all creditors who are supposed to be paid under your plan are paid early. Has anyone heard of this and is it applicable under the new law? I'm sorry if this has been answered before - I really do try to look this stuff up before I ask, I promise!

Has anyone else had their stimulus taken for taxes you're paying through your BK? Just curious!!

Take care all and Keep on Truckin'!!

[sahaley]

yes they applied all of our stimulus to back taxes - even though is part of our bk plan.... no surprise there...