Salary Increase from Experince Question Income Tax Refund

[AZNoName]

IMO, the best thing you can do with any extra cash you have on hand would be to prepare (legally) for the next 3-5 years of a Ch13. Having a safety net is going to be so important when you're unable to get any more credit. I ended up cashing out my stocks to buy 6 months worth of food and a new mattress to replace my old one. (looking back, I could have easily claimed the stocks as non-exempt and paid the value back, but oh well!)

Are there things you need to prepare for? (i.e. home repairs, dental or medical procedures, etc) that the money could be used for? Might as well use it while you have it instead of needing it in a couple years when you might not have the funds...

[LadyInTheRed]

Lady please close this thread It's gone past the point of respectful and informative. It seems like the mud is in the air and this is not a mud slinging forum. I joined it for advice not for lectures....

elatuar2000, it is you who have muddied the air in this thread. I see nothing disrespectful in mountanddo's posts. In fact, I can't find anything to disagree with. He/she is giving you honest advice from his/her perspective based on what you have posted on this forum. When you seek advice in a public forum, you don't get to dictate what kind of advice people give you. Getting the perspective of others is part of the benefit of posting to such a large group of people. You can choose what advice to take and what advice to ignore.

People around here may feel a lot less willing to help you when you make comments like "You have allot of nerve to call me irresponsible when I have NOT filled BK you HAVE." I think most members of that board would find that comment offensive.

[mountanddo]

I respect the way you live your life all high an mighty and giving fantastic advice but that's YOUR problem and YOUR opinion. I could care less about your situation or observations.

I'm sorry your credit or salary does not allow you to buy a car. I truly am but that is YOUR problem not mine. LOL my "Mindset" what would you know about my mindset???

Continue to troll forums and be bitter because it's not working for you. Stay out of mine I don't need your predictions or observations they are truly irrelevant.

No where in my post in this thread did I say anything about my ability to purchase a car. You may be referring to another one of threads where I commented on your purchase of a "2011 fully loaded Maxima" and you are correct, my salary doesn't allow me the ability to fund a car right now but that certainly wasn't the basis for my response to you in this thread.

I do think you are crazy to gamble with your tax refund, even if you were a semi pro. I don't think gabling is always crazy, only when you can't afford to lose the money you put on the table. If you are getting ready to file BK, you can't afford to lose that money.

I believe that LadyinRed basically said the same thing I said however possibly a little more eloquently than I did.

Please don't attack me because you don't like my observations in your post. No where in my post did I personally attack you. If you find my predictions and observations irrelevant then that is your privledge. There is really no need to post rude comments because someone posts something you don't want to hear. I will continue to post my opinion until I am told otherwise not to. If you don't get value from it then by all means ignore it. If you disagree with something I've said then please respond to me respectfully and exclude the personal attack.

[momofthree]

As far as the tax refund goes, you would be better off adjusting your withholding prior to filing. Here is why. When you submit your schedules, it will show your expenditures with $xxx amount of dmi to go towards your plan payment. But when the tt reviews your taxes, he'll see your refund and divide that by 12 months and add that on to your dmi, because technically, it IS dmi. So, to use a nice round number, lets say you get a refund of $2400. That adds $200 on to your monthly payment.

But, if you adjust your withholding to break even at tax time, then you may be able to come up with extra expenses on your schedule J to eat up the extra monthly dmi that the overwithholding will provide.

Clear as mud? lol.

[LadyInTheRed]

Lady you just said all my cash is assets and I have it to give it to them.... How do I make a cushion if A I cant withdraw the money and B if I do I have to prove were I spent it....

I said your cash is an asset, but I didn't say you have to give it to them.

I'm missing a part here??? Help me please?

I think you need to read more carefully.

Your 2011 refund is a different issue. If you file BK before you receive and spend it, it will be an asset of your estate that you need to exempt. If you can't exempt it, you can keep it, but it will be part of your Chapter 7 liquidation test (i.e. your Chap 13 plan must provide that your unsecured creditors receive at least what they would if you filed a Chap 7 and your non-exempt assets were liquidated).

If you have the cash at the time you file, you will have to list it as an asset and exmept if you can. ..[snip]... In a Chap 13, you can keep your non exempt assets as long as your plan satisfies the Chap 7 liquidation test.

[eltaur2000]

I think I did give you some constructive advice and I will stick with my comment about funding a trip to Las Vegas to gamble your last dollar away IS irresponsible whether you are filing BK or not. Your comment about people that file BK are the ones that are irresponsible shows that you don't really know a lot about the subject. It's ususally the responsible ones that have to file BK. If you don't have to file BK that's great! I hope you do get that 90k job. You yourself stated that you couldn't live without your IPad, gym membership and travel. I'm just observing that I don't think that with the mindset that you have that you will be successful in a 60 month Chapter 13. I don't think that's really what you want to hear though. There are things you will have to give up and your tax return might be one of them. There is a trade off to becoming debt free. I'm not attacking you, I am trying to get you to see things realistically.

I respect the way you live your life all high an mighty and giving fantastic advice but that's YOUR problem and YOUR opinion. I could care less about your situation or observations.

I'm sorry your credit or salary does not allow you to buy a car. I truly am but that is YOUR problem not mine. LOL my "Mindset" what would you know about my mindset???

Continue to troll forums and be bitter because it's not working for you. Stay out of mine I don't need your predictions or observations they are truly irrelevant.

[mountanddo]

I think I did give you some constructive advice and I will stick with my comment about funding a trip to Las Vegas to gamble your last dollar away IS irresponsible whether you are filing BK or not. Your comment about people that file BK are the ones that are irresponsible shows that you don't really know a lot about the subject. It's ususally the responsible ones that have to file BK. If you don't have to file BK that's great! I hope you do get that 90k job. You yourself stated that you couldn't live without your IPad, gym membership and travel. I'm just observing that I don't think that with the mindset that you have that you will be successful in a 60 month Chapter 13. I don't think that's really what you want to hear though. There are things you will have to give up and your tax return might be one of them. There is a trade off to becoming debt free. I'm not attacking you, I am trying to get you to see things realistically.

[eltaur2000]

Well not to sound condesending but why did you hire an attorney if you weren't going to listen to his advice? He's giving you advice based on seeing your whole situation. I'm assuming that your attorney has worked with the trustees in his district and knows what they will and won't allow. Depending on how much the refund is you are going to have to provide some documentation on what you did with the money. If you get the refund in Feb and file in March you might be hard pressed to justify it went to living expenses but then again I don't know how much you are getting back.

Frankly I think it's pretty irresponsible to contemplate a trip to Vegas to go gambling when you are unable to pay your debts off and are going to file BK in 4 months. You might consider spending that money are necessary living expenses like home repairs or purchasing household goods for 6 months to help you last through a 60 month Chapter 13.

Really? LOL I'm not going to get into a forum debate over nothing. You have allot of nerve to call me irresponsible when I have NOT filled BK you HAVE. If you have nothing constructive to say don't say it at all. It's not my fault you did not get the proper advice and seek the correct information before filling BK. It's actually a 2011 Fully loaded Maxima that I got with my credit that I intend to pay in full. When you finance 20k worth of surgery and 10k in Home repairs then come talk to me.

Don't judge me for trying to get all the information before I file IF I decide to file. I still have a solid shot at a 90k job way before I file. I hired the lawyer because honestly 3500 for peace of mind is nothing in my book.

Lady please close this thread It's gone past the point of respectful and informative. It seems like the mud is in the air and this is not a mud slinging forum. I joined it for advice not for lectures....

[mountanddo]

Well not to sound condesending but why did you hire an attorney if you weren't going to listen to his advice? He's giving you advice based on seeing your whole situation. I'm assuming that your attorney has worked with the trustees in his district and knows what they will and won't allow. Depending on how much the refund is you are going to have to provide some documentation on what you did with the money. If you get the refund in Feb and file in March you might be hard pressed to justify it went to living expenses but then again I don't know how much you are getting back.

Frankly I think it's pretty irresponsible to contemplate a trip to Vegas to go gambling when you are unable to pay your debts off and are going to file BK in 4 months. You might consider spending that money are necessary living expenses like home repairs or purchasing household goods for 6 months to help you last through a 60 month Chapter 13.

[eltaur2000]

eltaur, I thought you had an attorney. Didn't your attorney tell you you could buy a brand new mazda to lower your DMI? How much is the refund you are talking about? What does your attorney say about it?

Also when my attorney sent me my paperwork, it specifically states DO NOT GAMBLE. You also might be hard pressed to explain a trip to Vegas unless of course you actually live in Vegas right before you file BK.

Im getting safe textbook answers.... Im in the forum for real live case experience responses. Don't mean to sound condescending but don't you think I have asked my attorney all the questions. Yes, he gave me a go ahead on the car but a "It can go either way with the tax refund" "depends on the trustee"

[mountanddo]

eltaur, I thought you had an attorney. Didn't your attorney tell you you could buy a brand new mazda to lower your DMI? How much is the refund you are talking about? What does your attorney say about it?

Also when my attorney sent me my paperwork, it specifically states DO NOT GAMBLE. You also might be hard pressed to explain a trip to Vegas unless of course you actually live in Vegas right before you file BK.

[eltaur2000]

The word "claim" sounded like you intended to lie. I'm glad I misunderstood.

I do think you are crazy to gamble with your tax refund, even if you were a semi pro. I don't think gabling is always crazy, only when you can't afford to lose the money you put on the table. If you are getting ready to file BK, you can't afford to lose that money. You'd be much better off hanging on to it to start your emergency fund. The bigger a cash cushion you have going into your Chap 13, the better off you will be.

I do not know if gambling your refund away on the eve of filing can cause problems in your BK.

Lady you just said all my cash is assets and I have it to give it to them.... How do I make a cushion if A I cant withdraw the money and B if I do I have to prove were I spent it....

I'm missing a part here??? Help me please?

[LadyInTheRed]

I'm actually not lying i was planning on going to Vegas with my income tax check and letting the dice roll. Actually stupid thinking but is my last change at not filling bankruptcy before you think I'm crazy I was a semi pro poker player for a long time. Winning 200-300k is not that foreign to me. I was hoping a good run of cards could keep me out of Chapter 13.

The word "claim" sounded like you intended to lie. I'm glad I misunderstood.

I do think you are crazy to gamble with your tax refund, even if you were a semi pro. I don't think gabling is always crazy, only when you can't afford to lose the money you put on the table. If you are getting ready to file BK, you can't afford to lose that money. You'd be much better off hanging on to it to start your emergency fund. The bigger a cash cushion you have going into your Chap 13, the better off you will be.

I do not know if gambling your refund away on the eve of filing can cause problems in your BK.

[eltaur2000]

If you have the cash at the time you file, you will have to list it as an asset and exmept if you can. If you get a refund and don't list any cash as an asset, be ready to explain where the money went. You can spend the cash on your attorney and on necessary living expenses or to purchase exempt assets. Do not "claim" anything that is not true and do not try to hide the cash. In a Chap 13, you can keep your non exempt assets as long as your plan satisfies the Chap 7 liquidation test.

I'm actually not lying i was planning on going to Vegas with my income tax check and letting the dice roll. Actually stupid thinking but is my last change at not filling bankruptcy before you think I'm crazy I was a semi pro poker player for a long time. Winning 200-300k is not that foreign to me. I was hoping a good run of cards could keep me out of Chapter 13.

[LadyInTheRed]

What if I file in March and got my refund in Feb? Can I keep the funds in the bank or will they be considered assets? Can I with draw the funds? Will it be questioned? Can I claim I blew them gambling?

If you have the cash at the time you file, you will have to list it as an asset and exmept if you can. If you get a refund and don't list any cash as an asset, be ready to explain where the money went. You can spend the cash on your attorney and on necessary living expenses or to purchase exempt assets. Do not "claim" anything that is not true and do not try to hide the cash. In a Chap 13, you can keep your non exempt assets as long as your plan satisfies the Chap 7 liquidation test.