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Reminder: October is When Trustees Look for Tax Refunds

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    Reminder: October is When Trustees Look for Tax Refunds

    This is just a reminder that starting in October, the chapter 7 trustees start go after income tax refunds for the taxes you will file next year. Assuming you live in a state with no exemption (which is most states) Time to start strategically planning your case if you anticipate a significant refund.

    Just be prepared, if you file your case anytime after October and if your past tax returns show a history of tax refunds, at the 341 meeting the trustee will have you sign a stipulation to turn over any forthcoming tax refund,

    Why October...mostly simple math. For most people, it is too late in the year to change withholding to have any meaningful affect on how much of a refund you will receive.

    Note, your case will still be discharged on its normal schedule, but it will stay "open" longer.

    #2
    Can the federal wildcard exemptions be used for cash?

    I do not own a home and will be using the federal exemptions. My car is worth about the same amount as the federal exemption.
    Filed Ch 7 pro se Oct 2010 . Filed student loan AP pro se Feb 2011 . Discharged Feb 2011 . AP trial 1/10/2012 . $28K in student loans dismissed Jan 2012 . ECMC appealed. Appeal hearing 7/2012. Original judgment upheld 9/2012.

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