confused bout tax return

[goingunder]

We paid our retainer fee $600.00 to our attorney at the end of January. The remainder is due when he gets our papers done, to file. Well the same day we paid the retainer, we had gotten our taxes done. We had our check mailed to us, and have recieved it. Our attorney said we cannot spend it, and he would try to exempt some of it. The amount is for $2600.00. Our attorney still has not had us come in to sign papers, so wouldnt the money be ours? Or is he considering our filing date the day we retained him?

I am confused, because from what I've understood from this forum is that if you get your tax money back before filing and spend it on necessities, that is not a problem?

We are filing in Missouri. Chap 7. No assets.

Am I misunderstanding? I just dont want to leave it set there, and because of that the trustee end up taking it when i could have put it to good use.

Thanks for explaining this to me

[BKOnce]

I think the question would be how much & when... not why and how.

[jal1129]

My understanding is that even if you recieve your refund before filing in order for you to keep it you would have to be able to exempt it. We recieved ours before filing, but it was not large and we were able to exempt it.

[SamanthaJones]

Consistently, all advice is to spend that tax refund before filing BK.

On things you need; teeth, tires, new water heater, food stocking,etc. The trustee asks where it went, you tell him and show receipts if asked. That is- if you get the refund prior to the actual filing date. If you are owed it or get it after the filing date, likewise then- all advice is that that situation can get complicated.

[jal1129]

This is one of those things that vary by district/trustee. Since in your op you say your lawyer told you not to spend it and he would try to exempt some of it, I would be inclined to follow his advie, thats what you are paying him for after all. I think it can also vary depending on the time of year. We were told by our lawyer once it was mid-Feb and going forward the trustee would want to see the 2006 returns and any return would need to be exempted and that if it was over $2000 we would'nt be able to keep all of it.

I would also give him a call back and double check on this and also to see if your paperwork is done. Ours did our paperwork while we were sitting in the office.