I had my 341 meeting today, all did not go as well as I had hoped. My case is an asset case and there is about 1500 in cash that I could not exempt. The argument came over child tax credit which is about 4k the trustee says that although the bankruptcy law saw that ctc is exempt (CRS 13-54-102(1)(o)) (this is clearly spelled out) that because it takes my taxable income to 0 therefore it is not exempt. My lawyer says this is complete BS and apparently the issue has not been decided yet in my state, there are still about 8 cases where a decision has not been reached. The trustee said he will contact us on monday to make a deal. My lawyer says to expect a him to offer to meet in the middle. Can anybody help make sense of this for me, what would happen if I refused his deal.
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My guess, and it is just a guess, would be that if you refuse to deal, the trustee will force the issue. He has already shown his hand. I assume the ctc that you are referring to that is causing the problem is the refundable portion, or additional ctc, that is relected on form 8812 of your tax return, since your taxable income is zero. This will prove to be an interesting case because that ctc is not reducing your tax, but is, in essence, putting unearned income into your pocket. I can see the trustee's point. And I can see your point as well. Bottom line? If you have the time and money to fight the issue, sounds like it would be an interesting case and you may lose anyway. For $750, if he meets in the middle, I would probably let him have it and reduce my stress and frustration level. -
Just to be clear the 1500 we agree is not exempt and I will be paying to the trustee it is the 4K that we are arguing over. Where is the line, should I stand and fight for it?"Dont Piss down my back and tell me its raining."Comment
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