Tax refunds!?

[sharon7070]

I talked to the lady who answered the phome at a laywers office and she said that our $4000+ tax refunds would be exempt because they come from child tax credits. As long as they were used for "living expenses", we really need the money because we use it to catch up on utilities, pay the vet, buy things we need ect.

Now Everyone else is telling me differently, telling me we will lose our refunds. We just got our w2s today so could go file now and get our refund in a few days or weeks, but are at the point financially where we need to file chapter 7 ASAP.

We are in NE, if thet helps at all.

Does anyone have any advice on how to proceed?

[HHM]

What is pending that makes it so you have to file ASAP.

The person you spoke to is probably correct, some exemption provisions allow you to exempt your tax refund if it is related to child income tax credit. However, it would be much easier to get the refund first and spend it, then to give the trustee an opening to grab it by filing an objection to claimed exemptions.

[AMISLANDER]

....hmmm...when I had to turn over my $3K 2005 tax return, there was nothing about child tax exemptions...FL trustee just took 10/12 of it. You better spend it before you file!

[robin5kids]

What do you mean spend it before you get it?

I was just wondering.

[SinkingFast]

File your taxes, get your refund, and spend the money on necessities. Be sure to save receipts. Then file BK.

If you file BK and haven't filed your taxes, the Trustee will try and snatch your refund if possible. If the money's already gone, spent on necessities and living expenses, there's not much the Trustee can do.

BTW,....... Attny and filing fees are acceptable expenses when spending an income tax refund.

[whatamess]

Question

Did you file already? If not dont until you have the check in your hand and its spent!!!! Like said, save your receipts. Im not going to fille BR until I have my check and my kids dental work is done, car insurance premium paid for six months, dogs go to vet, and I do some mega grocery shopping! Like you, I am expecting a $4000 + refund in child tax credits. I need them badly.
$2000 will pay the lawyer...
If you can avoid it dont file until you have it...why give a trustee your childs tax credits the gov gave you because they know you need them??? The Goverment takes enough as it is. Take back what is yours!!!
WAM

[Voltron1978]

I was able to cover my tax refund with an exemption. My best advice is to speak with your attorney and then keep receipts as to where the money was spent. Even though mine will be covered, I will definitely keep track of where that money goes.