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Case is already closed - why would I give my tax refund away?

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    Case is already closed - why would I give my tax refund away?

    I accessed Public Records today via PACER and verified what an attorney (not my attorney) told me a couple of days ago...

    My Ch7 case is discharged, closed and marked "no assets". It is not pending - it is done. The Trustee's Letter of No Distribution has been filed.

    My attorney (who isn't very helpful and doesn't return my calls) finally returned an email after 2 weeks, telling me that I need to forward my refund to him, so he can send it to the trustee to see what the trustee will take. (probably all of it, attorney says.)

    The problem is, in order for the trustee to take anything at this point, they absolutely have to reopen the case. (I had a second attorney verify this.)

    Why would I send the refund in now? That's like saying, "Hey I know you didn't take it, but I want you to reconsider. In fact, here it is, take it! Reopen my case!"

    In addition to the case being closed and marked "no assets" for distribution, I have never received any letter telling me to submit my refund. The trustee only told us verbally at our hearing to contact our lawyer before spending any of the refund.

    From where I'm standing, it looks like I am well within the law here. I have copies of all the public records in my possession which prove the case has been closed and that no assets are being administered.

    Anyone out there have any thoughts on this?

    #2
    We were told by our Trustee to send copies to our Attorney also once our taxes were filed, however our case did not close yet. The Trustee did not say he was TAKING the return, just to send copies to our attorney. We assume that he is taking the return. Maybe we have the same attorney's since mine never answers my questions either!!

    Comment


      #3
      If the Trustee had intentions of taking your refund he would have kept your case "open" until he settled the issue.....
      By your case being discharged and closed, yes, he would have to petition the Court,reopen your case (at his expense) to access any income tax refund you might receive.... (many times its just not worthwhile to him considering the expense involved)...

      Personally I would put my refund into a savings account temp, wait three months to see if your case is reopened or see if you get a letter of request from the Trustee....

      If the trustee had intended to take your refund, he would have left case remaining open, told you to submit everything to him (tax papers and refund). Most Trustees have you sign papers at 341 meeting stating that you know that you are required to do this (known as a paper trail).... Verbal statements have very little value in the Court systems.......

      Let us know what you decide to do....
      Minny

      "It's amazing the paths that our feet sometimes follow in life".

      My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

      Comment


        #4
        I got the verbal request...

        ...not to spend my refund...followed up by the written request...but didn't have to sign anything...as it looks...may not be much to give up...
        Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
        Who it was we were below, where we've been and where we go

        Comment


          #5
          If you got both verbal and written, you have to turn it all over to the Trustee - THEN he will send you back what he wants you to have.

          Sorry,
          Minny

          "It's amazing the paths that our feet sometimes follow in life".

          My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

          Comment


            #6
            It sounds like your lawyer is a little unattentive, and possibly not as informed of the status of your case as you are. From my understanding... IF the case is closed, its closed!!!! I would spend spend spend that refund. Your lawyer sounds like a dumb sh*%! Don't send him that refund.. he'll probably try to cash it himself!!

            Comment


              #7
              Help me understand what I saw on PACER...

              Okay, after reading a lot on this forum, I am a little unclear as to what I should see on PACER if my case is closed.

              I had the 2nd opinion from another BK lawyer who flat-out said it was closed.

              When I checked PACER myself, I did not see anything that actually said "case closed".

              What I did see there is the discharge and the "Trustee's Report of No Distribution" along with the case being marked "no assets".

              Should I actually be looking for the words "case closed" on PACER?

              I figured that the 2nd lawyer was basing his "case closed" conclusion on the discharge and report of no distribution combination.

              Am I missing something here?

              Thanks for all of the help I've been getting in this thread!

              Comment


                #8
                "Awaiting Closing ,Awaiting Confirmation Hearing ,Plan Confirmed"

                This is what I found when running the docket report.
                Next to the word "Dismissal", no date has been entered.

                What I don't understand is the report of no distribution. It looks like it says that the trustee sees nothing valuable worth administering. How can that be, if in fact, they are waiting for my refund? Is that legal?

                Crumb! This is not what I expected. I wonder if that second lawyer just took a quick look at one page on PACER and then made an assumption.

                BTW, why does it say "Awaiting Confirmation Hearing"?

                Thanks for your help.

                Comment


                  #9
                  Call the court clerk and ask them if the case is closed. If its not, they probably first want to see a copy of your return, not the actual check itself yet.

                  Comment


                    #10
                    perhaps you missed it in the flurry of paper work prior to your case being closed by it's a no- brainer for the trustee to notify you that the return upon being processed will in part become part of the estate. the fact that your case closed prior to the return being processed and thus available to the court has little to do with it still being property of the court. all courts proceed differently and I could be wrong, just my opinion.

                    Comment


                      #11
                      If the Court didn't ask you for your tax returns, then don't send anything in. There is a date set for filing objections, and if there are none....you'll go to discharged.

                      I, for one, jumped the gun and told the court early how I use my tax returns. I also justified owning two vehicles (one being a motorcycle). I've kept it all, and I'm now at my 61 days. I'm just waiting for the system to catch up to itself and report me as discharged.

                      No assets, no objections, no worries.

                      Comment

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