Georiga: Chp 7...Filed Pro Se, Will they keep my refund &.....

[MrsJ]

Hello Everyone,

We are a married couple who has filed BK/Chp 7. We just did the first step and filed down at the court house Monday 1/25 .

We have filed Pro Se , We paid a paralegal to do the paperwork for us.

I just wanted to know a few things..

I had filed my taxes 1-15-10 they were accepted and will be deposited so it says on 1-29-10 but I did the simple pay so looking probably more closer to 2-5-10 before I probably see them. Do you think the courts will ask for them back? Fed will be about 8K and State is about 1K.

We have personal loans to repay and a car to replace ( currently in a rental ) so I really hope they dont take it or ask me for it if it does come to me, which I think it will still come through since it was already filed prior to me submitting the bk paperwork. One of the loans we owe is 2K alone and we have to pay that person back that was their personal money . But I would hate to get it and start paying people and getting the things we need and then they say give it to them. Because I will more than likely have gotten it prior to any meeting or the next step. So it would pretty much be gone with moving out of this house, getting a vehicle and paying what we owe and catching up on bills.

And also, are me and my husband both allowed to have a car? Nothing expensive just two point a to b cars.


We have a house that we will gladly be letting go of and a car that no longer works that we are also giving back, past that no expensive assets of any kind. One income that takes care of 5 people.




And do many of the creditors actually show up at the 341 meeting, so very nervous about that.

[newbie2]

I may be missing it, but you don't state whether the income tax refund was exempted on your bankruptcy petition.

If this were me I wouldn't spend a dime of it until you heard from the trustee whether the money will be yours or whether they will want it for the bankruptcy estate.

[mtbc]

I am not an attorney, so just take this as ideas to explore, not advice, but: I'd be very doubtful about spending any tax refund yet. If you can exempt at least some of it (2nd page of Schedule B, and Schedule C), I'd do so forthwith. Then after the trustee files after the 341 that you can keep your exempted assets, I would expect it to be fairly safe to spend the exempted portion.

Creditors usually don't show up for the 341 unless there's a reaffirmation to be done or some serious allegation of fraud or somesuch. I saw no creditors whatsoever during the time I was in the 341 room at our courthouse.

It's typically fine to have a cheap car; the IRS guidelines certainly offer enough room for one. Related reasonable expenses can be listed on Schedule J though you may have to justify them. Now you've filed, I believe that there's some rule about not incurring new credit without the trustee's permission until ... well, I don't know when, but my point is, to check into that before using any credit at all to obtain a new vehicle.

[MrsJ]

Thanks for all the ideas. Yeah we don't plan to buy a car on credit, just a used car that we can by outright, because we are letting the other one go back ( doesn't work ) and we are currently in a rental. No public transportation in my area.

My main thing is we need to be able to at least get a car and moving expenses, since we are giving them back their car and surrendering the house as well. So we need funds to be able to pay down 1st month and deposit and to purchase a car, so I hope it all works out. Otherwise, it will leave us in worse shape then we are already in. Can't keep a job with no car, and the rental makes it impossible to put the money together out of the paychecks to move. Ughhhhhh . Hopefully it will all work out.