Update about my last post - close and tax refund

[rilbrianne]

I called the clerk's office and asked politely if my case closes at the same time it is discharged or if there is a waiting period. She said - as long as nothing is holding it up (I'm assuming that means investigations by trustee or something along those lines) that it takes about a week after discharge to close. When they've been notified that all parties have received the discharge notice, they'll go through and close it out.

I have been worrying for nothing, I will wait a few more days and hopefully my case will close. If it doesn't close within a little while, I can probably assume the trustee is holding it open to take my refund.

(I still don't know if he will take it, since my case was declared a no asset...?? still no answer to that question but at least I can rest my mind for a few more days.)

[Minnymouth]

CONGRADULATIONS on the "discharge"..............really your case is over (except maybe for the refund).........

The debts are gone, a fresh start awaits you....

Your case will close with the courts as soon as paperwork comes down the tubes or as soon as the Trustee takes the refund if he's going for it.

You have done great.............

[rrockinggramma]

[rilbrianne]

Well, good. I haven't received anything in writing by the trustee... I just hope I don't get it in a few months when I file, lol. If he's gonna take it, I'd like some notice.

Good news: I have applied for a job and have made arrangements with my sister to get her car if I get this job... and I told her I'd pay her back w/ my taxes. The court in St. Johns (MI) is hiring for a Legal Secretary My dream job and I don't want to turn it down because I don't have a second car.

[oretnom1]

okay, I filed C7 in late 2006 and was discharged in Spring 2007 but the case is still not closed. Filed 2006 taxes in early 2007 and received refund but no one ever asked for it. Does anyone know if there's any limit on how long after a discharge a trustee can ask for a tax refund? Do you think they'll still ask for mine? What can happen if a year later they ask for it but it's been spent long ago? If they were planning on taking it, wouldn't they typically ask for it around tax time when they know people are filing and receiving their refunds?

[danaf]

Huge Congrats! Be happy - you made it!

[PaKettle]

okay, I filed C7 in late 2006 and was discharged in Spring 2007 but the case is still not closed. Filed 2006 taxes in early 2007 and received refund but no one ever asked for it. Does anyone know if there's any limit on how long after a discharge a trustee can ask for a tax refund? Do you think they'll still ask for mine? What can happen if a year later they ask for it but it's been spent long ago? If they were planning on taking it, wouldn't they typically ask for it around tax time when they know people are filing and receiving their refunds?

YEs, I would think they would have already asked for it if they were going to. But more importantly, why isn't your case closed? Are you sure it is not closed? You've checked Pacer?

I'd call and ask my attorney why my case is not closed, if I were you. If you filed pro-se, then I'd call the trustee or someone and ask.

[oretnom1]

I'm positive it's not closed as I have been checking Pacer. It's still showing listed in Pacer as an asset case. However, when I did ask my attorney very recently what the long delay is about and why it's listed as an asset case (as there are no assets) he said it's likely due to a house that was part of the BK that we let go to foreclosure where the trustee was waiting to see if there would be any equity after the bank sale but there was not. The house finally sold early this month after 7 months on the market and sold to another bank for way less than what was owed. The bank basically dumped it hard! My attorney went on to say that due to the housing crisis, foreclosures and bankruptcies are through the roof so our paperwork is probably sitting somewhere in the middle of a huge stack of filings on the trustee's desk and it may still be a while before it closes. Although now, that the house is finally gone, maybe that will pick up the pace of things.

[SinkingFast]

Well, good. I haven't received anything in writing by the trustee... I just hope I don't get it in a few months when I file, lol. If he's gonna take it, I'd like some notice.

At our 341, the Trustee said he wanted to see our filed Income Taxes come Spring.

Shortly after our 341, we got a letter from the Trustee saying the same thing. The letter went on to say that the Trustee could possibly take any refund we got "for the benefit of our Creditors".

It was a "Sign, Date, and Return" deal. That we had read the letter. Understood what it meant. And agreed to the terms.

If your Trustee handles things the same way, I'd think you'd get some sort of notice.

[rilbrianne]

At our 341, the Trustee said he wanted to see our filed Income Taxes come Spring.

Shortly after our 341, we got a letter from the Trustee saying the same thing. The letter went on to say that the Trustee could possibly take any refund we got "for the benefit of our Creditors".

It was a "Sign, Date, and Return" deal. That we had read the letter. Understood what it meant. And agreed to the terms.

If your Trustee handles things the same way, I'd think you'd get some sort of notice.

Thank you for posting a detailed answer to my question. I don't understand why they all wouldn't have "generalized rules" like that. Rules that they all go by. ?? Hmm, nothing to do but wait and see I guess.

[rrockinggramma]

All districts have their own rules. In Michigan, when you file a chapter 7, the trustee's do not mess with your refund. You are ok and will never get a letter from the trustee. However, other districts and their trustee's do mess with refunds. However, one advantage for Michigan is that they do not. Enjoy the holidays.