Tax Refund question

[kissrawks]

My attorney (Indiana) says that the trustee can take all of my tax refund except for the EIC. Now, when we first met, he said the child credit. Which is it, EIC or child credit? He wants a copy of the tax return after I file so the trustee can determine how much, if any, he wants, even though the trustee didn't say anything at the 341. Discharge is in Feb sometime.

Thanks!

[StaciMM]

Sounds like your attorney is trying to look out for you. Even though the trustee didn't say anything, its best to prepare for the worst. If you filed at the end of the year, then the trustee can take actual income tax refund. Look at how much was withheld for taxes-this should be the most that he can take. (Because it is income that you earned prior to filing, a little like a savings account w/ the IRS as administrator.)

For the most part, EIC & child tax credits is off limits because they were not income for 2005. I have read that OH has ruled the EIC is fair game, that is the only one I know of where the EIC can be taken.

[bkfiler]

what was your petition date? to find out the max he can tax pro-rate that over the year based on the petition date (date you filed bk with the court).

who is he in "he want a copy"? if the trustee didnt ask for it then dont give anything to your attorney imo. but more likley you mean the trustee so in that case the sooner you get him your filed tax paperwork the quicker he can determine what you owe.

[kissrawks]

The lawyer wants a copy of the return. At the 341 meeting the trustee didn't say a word about it, but the lawyer has said to expect most of my refund to be taken. At first he said except for child tax, now in an email today he said EIC. I filed on 10/6/05.

By my estimates, EIC was $1500, child tax credit $2000, additional child tax credit $2800. I only paid $265 in fed taxes. My expected refund is around $4600 or so (everything is rounded down).

Thanks for any and all advice.

[StaciMM]

The attorney likely knows the trustee and what he/she wants or expects. If you only paid in $265, and filed 3/4 of the way thru the year-most likely the trustee will not be interested in your refund. That doesn't mean he is going to take it at face value though.

[bkfiler]

i sure dont know whats up with attorneys tell peopel to send the refunds in when the freaking trustee doesnt even ask for them. it sounds to me like a back-door- good ol' boy payoff scheme. why should the attorney be looking out for the trustee. ill tell you why, its a you scratch my back ill scratch yours when you need it imo. in thsi case it doesnt benefit you.

imo, if the trustee didnt ask for dont send anything. make the attorney tell you why you should send it when the trustee never asked for it.

tell the attorney to go suck your eggs-n-sausage biscut and mind his own business.

[StaciMM]

From the OP, the attorney asked for a copy of the tax paperwork, not the check. Doesn't seem unreasonable to me-afterall, the attorney has already seen all your other private paperwork: prior tax filings, check stubs, etc.

[bkfiler]

well if all he wants is paperwork then fine. but its too late in the case to matter anymore. if the trustee didnt ask for it then no one needs it.

[StaciMM]

Discharge is not for another month or so, which means it is not too late.

well if all he wants is paperwork then fine. but its too late in the case to matter anymore. if the trustee didnt ask for it then no one needs it.

[bkfiler]

but if 341 meeting is over then it is. thte attorney cant possible be reading the mind of the trustee. 341 is over. nothing to prepare for and collect.

[oretnom1]

While I can't recall if the trustee asked that we send tax returns or tax refunds at the 341 mtg in Kansas City, when i asked my atty about potential tax refunds he simply said "well, I wouldn't go calling the trustee to ask him about it." He went on to say that if the trustee needed anything from me, I would hear about it from him (my atty).

[lrprn]

Just a reminder to oretnom1 and everyone else that it's against our forum rules to post to old threads like this that have been inactive for more than a few months. Because the latest bankruptcy law is constantly changing due to new court case interpretations, these old threads may contain wrong information and we don't want any members to be misled. Thanks, all!