Chapter 7: Tax Refund Timing/Documentation

[kberly]

I am filing for Chapter 7 within the next two weeks. I am filing pro-se and have just about everything together or figured out with one exception:

I received a tax refund of about $4000 in February. I have used it to stock up on boring things like paper towel, food, wood pellets for the stove, propane, the filing fee for bankruptcy, some clothing, car repair and similar. I feel confident that what I used it for is not going to cause a problem (no jet-skis, no payments to anyone, etc) and I have what I did obtain listed on Schedule B. My question is: where and how do I indicate that I received this? I get how it works if I was awaiting a refund, but I can't seem to figure this one out and don't want to get in trouble.

[LadyInTheRed]

There is no place to list a refund that you received and spent. It is no longer an asset. The trustee may ask how you spent it at your 341. But, the fact that you received a refund probably needs to be taken into account when determining your disposible income. I am not sure whether that happens on the means test or Schedule I. Do you have an attorney who can determine how to handle that?

[kberly]

I do not have an attorney but I think your answer is it! I looked at Schedule I again and since it's gross income, it accounts for that. I believe I was way overthinking that one. Thank you! It's so nice to have a place to ask and process this stuff. Taking this on has been strangely empowering - a lot of work, but well worth it. I hope I feel the same way after my 341 meeting!

[LadyInTheRed]

I do not have an attorney but I think your answer is it! I looked at Schedule I again and since it's gross income, it accounts for that.

Make sure your income tax liability is accurate. It is not necessarily the same as your withholding.

[kberly]

Yep, I have one job and no other income so that should cover it. Thank you, thank you!