Question about filing income taxes...

[aces67]

We filed Ch 13 last March so it's been almost a year. Now I realize that the trustee will most likely take our tax refund but I'm what I'm wondering is how closely will he look at our return??

We live on a family farm but we don't put any money into it. We can't afford to. Anyway my father in law sold $7000.00 worth of timber from OUR PROPERTY and didn't give us the money. Instead he gave us all of the farm receipts for the year and wanted us to take them off of our Income Tax return. Against my better judgement dh did this and our total farm loss was $8000 and it resulted in an extra $1200 back to us for a total refund of $4026.00.

Now my concern is that the trustee is going to wonder how in the heck we came up with $8000 to spend in the first place. Right??

Our BK included 1 secured debt and all the others were unsecured. If the trustee chooses to dismiss our case at this point the $4026 would pay off the secured debt and then we would be left with the unsecured debt. Do you think this might happen??

All this worrying is NOT worth the extra $1200. I'm in TX by the way if that helps.

AManda

[253BK]

In Texas I think you will be ok I will have to read some online! HHM will chime in sems to be a pro on alot of this stuff! I would just sit back and relax becuase it is done and cant be undone right? Take it day by day!

[aces67]

you are right..worrying about it won't help anything but I'm just so scared about what may happen right now.

[Flamingo]

When there is any big change in your financial house during your Chapter 13 Plan, always ask your attorney. From the date of filing to the date of discharge, your Trustee controls your financial house and when something like this pops us, check with your attorney as to what, if anything, you will need to do as to the event. After explaining it may turn out you don't have to do a thing and there will not be an issue as to your refund.