Question regarding tax refunds...>>>

[mesa777]

Question.. IF I expect to obtain a refund this year from my taxes and will be filing for BK later in the year... Jun/Jul area am I able to spend the tax money without problems?

Would I be able to use the money for my BK attorneys fee? Dentist work? I guess what I am trying to find out here is what I can and CANNOT spend the money on so that I do not open up a federal case during my bankrupcy proceedings...

Also can someone please tell me the time frame that it takes to discharge a chapter 7 from the time the case is filed....

Thanks!!!!

[rilbrianne]

You can use your refund, keep receipts just in case they are needed by the trustee but I think you'll be fine. I wouldn't splurge on something like a huge stereo system but dentist work or a car, attorney fees, other things you need are certainly reasonable.

The time it takes from filing to discharge can vary depending on how busy the court is but here are some general guidelines. Your 341 meeting is *usually* about 30 days after your filing date... ours was almost 2 months. Then there is a 60 day period for creditor objections. After that, it could take anywhere from a day to a couple weeks for your discharge. This is, of course, if all goes well. If there are objections or the trustee needs extra information, or if the meeting is rescheduled for any reason the time will be longer. So, about 3 months or so.

[mysterie91]

Question.. IF I expect to obtain a refund this year from my taxes and will be filing for BK later in the year... Jun/Jul area am I able to spend the tax money without problems?

Would I be able to use the money for my BK attorneys fee? Dentist work? I guess what I am trying to find out here is what I can and CANNOT spend the money on so that I do not open up a federal case during my bankrupcy proceedings...

Also can someone please tell me the time frame that it takes to discharge a chapter 7 from the time the case is filed....

Thanks!!!!

Our attorney told us to wait until we got our return and spend it on necessities only. Nothing that could be considered a luxery in any way. Also she mentioned that since we are filing fairly early in the year (Feb or March) the trustee will probably not take any portion of the tax return expected in 2009 (for 2008) but filing later - around June/July - the trustees want the portion of the tax refund for the part of the year up until you filed. So in 2009 you may have to pay half of your return to the trustee. I am sure this varies by area.

[mesa777]

Thanks for the information... I want to use my return for $1500 in dental work... want to use $2000 for attorney fees... want to buy a cell phone and a computer for my personal use.. Question is this... I was advised that I can use this tax return for attorney fees... how do I know how much a "reasonable" amount would be for the attorney fees??? If the credit card companies want to fight me in court I would have to have some extra $$$ in the bank just in case... Is that legal?????