A little confused about income tax rebates, and trustees.

[debtsucks]

I know it is a little early to be thinking about this, but I don't want to get my hopes up. Last year we ended up having to pay during the tax season, and this year we are thinking we will get some back because hubs is making about 40,000 dollars less. Anyways, if we do get something back is it pretty much a guarantee that the trustee will take it? If so what does he/she do with it? I can't imagine them taking lets say 1500 or so to pay back over 13 credit cards. It wouldn't go very far. We are filing a no asset chapter 7. We are filing in mid February. Oh yeah and I am in Illinois.

[BobMango]

The only way to be absolutely sure is to find some way to exempt your refund, like using a wildcard. Of course if your refund is mostly earned income credit and child tax credits then those amounts should be exempt. I'm expecting a refund of several thousand dollars next year, mostly EIC and child tax credits, but I exempted most of what I expect to get using the federal wildcard, just to make sure there was no issue.

[keepmine]

Discuss this with your lawyer. If it can't be exempted, delay filing bk until you receive your refund and spens it down. A real basic example of pre-planning your bk.