well, 10 days in not closed

[rilbrianne]

I wonder if I should call. I had posted earlier about wondering if the trustee would take my tax refund. I had said that I exempted it but didn't go into detail. I exempted it under 11 U.S.C. Sec 522 (d)(5)....

(d)(5) The debtor's aggregate interest in any property, not to exceed in value $800 [$975 effective 4-1-04. Adjusted every 3 years by section 104.] plus up to $7,500 [$9,250 effective 4-1-04. Adjusted every 3 years by section 104.] of any unused amount of the exemption provided under paragraph (1) of this subsection. .......

Paragragh 1 States:
(1) The debtor's aggregate interest, not to exceed $15,000 [$18,450 effective 4-1-04. Adjusted every 3 years by section 104.] in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.


What do you guys think? Will this exemption even work? It's kind of late now to change it if it won't work. Should I simply call and find out what's going on?

[rrockinggramma]

Like I said before, Michigan does NOT go after tax refunds. LOLOL My daughters chapter 7 took a month to close. They are busy right now. It is ok. LOLOL It will close here soon.

[rilbrianne]

I know you told me... but I'm so worried because I can't find anything to back it up. I hope I'm not being rude... but how do you know they won't? Please forgive me for asking but I NEED to know. I'm going nutty worrying about it.

((((((HUGS!))))) Please don't be mad at me for asking

[rrockinggramma]

because the local rules for the eastern district of michigan say when you are discharged the IRS can send YOU the tax refund. It is yours. Also, I filed a chapter 7 in March 01, as did my 2 daughters in 04. All were during the tax refund period and not once was the refund an issue. LOL Relax. It is yours to keep.

[rilbrianne]

I see, I had read it before (I went through all of these rules before filing my paperwork) but interpreted it differently. I'm assuming the underlined part means that he would have sent something before the 60th day/ discharge. Thank you so much, I feel like a complete idiot but I REALLY need that money, most of it is earned income credit and child tax credit. They shouldn't be allowed to touch that. But the law doesn't seem to be specific about tax refunds... or not that I have been able to find anyway. So - here's the local rule I found for Eastern District of MI ... in case anyone else is paranoid like I am.

Rule 4001-3 Federal Tax Refunds in a Chapter 7 Case
Unless directed otherwise in writing by the trustee, the Internal Revenue Service may make
income tax refunds, in the ordinary course of business, to debtors in chapter 7 cases

[rilbrianne]

Oh, I'm not sure if I ever stated (or if it was important information) I'm worried that he'll take my refund that is due to come in 2008. He's probably entitled to a portion of it - from Jan to July 31 when I filed. That's what I was fussing over.

[rilbrianne]

It"s Closed!!!!!!!!!!!!!!!!!!!!!!!!!!!

All that fuss for nothin'. I'M SO HAPPY RIGHT NOW!!! I DON"T EVEN KNOW WHAT TO SAY!!!!

[newimges]

Congratulations and good luck to you in the future!!