Ch 7 and Income Taxes

[mdo23]

Just curious, I'm waiting on my Ch 7 discharge papers and we are ready to file our 2006 income taxes. Should I wait until we get discharged before I file? Can the trustee come in and take our refund?

[HHM]

You can file your 2006 income taxes whenever you like. Whether the trustee is entitled to your tax refund depends on when you "filed" for BK, not when your discharge occurred.

If you have already had your 341 meeting, you would probably know if your trustee is seeking any possible tax refund.

[mdo23]

Ok, our 341 was in August 2006. We are a no asset case if that helps any. Also the trustee didn't say anything about wanting our income tax reufnds.

[HHM]

You had your 341 in August, and are still NOT discharged? Discharge is supposed to happen 60 days from the date of your 341 meeting. You would have received an order for discharge by now. Perhaps, do you mean, your case hasn't closed (discharge and closing are two seperate things. A discharge is typically automatic, 60 days from 341 meeting, the trustee "closes" cases when there is nothing left for the trustee to do).

[mdo23]

There was a holdup in the reaffirmation paperwork from my bank for my wifes car, they didn't get us the papers until December and we didn't have our hearing until Jan. 18, so that extended the process. I didn't want to send in our certificates of debt education until i had an agreement to send in also. The banks excuse was that with the new laws the courts are a lot mor strict on reaffirmations than they used to be and that they wanted to make sure that the paperwork was right so the court would accept it.