Can I spend exempt tax return?

[4tmc]

ok here is my question....

I"m from IL and have filed already and my creditors meeting is the 10th of May.
I just recieved over 5000. in tax return which all was exempt except 392.00. Can I use that exempt part of my return to buy a 3000. car since mine other ones tranny just went out. And use the other 2000. to buy a camper?

I guess my question is can I spend the exempt money any way I want since it is exempt?

ps it is exempt b/c I filed head of household and child credit.

Thanks so much!

[wrinkleigh]

I would double check with your attorney. I wouldnt do anything until after the 341, because the trustee could still take it. He could possibly disallow the exemption.

Also, I would be very hesitant to spend it on "luxury goods", such as a camper before your are discharged and closed.

[jal1129]

I agree with wrinkleigh check with your attorney as you could be changing an exempt asset into a non-exempt asset.

[SinkingFast]

The IRS Refund Check is good for a while. You'll still be able to cash it in a month or 2.

Like the others suggested, WAIT. The Trustee could disallow your Exemption. So you wanna know about that first. If you spend the money, do you have $5K to cough up to the Trustee on a moment's notice??

As Jal suggested, you may be converting an Exempt asset, the Tax Refund, into non Exempt assets. Maybe your State only allows for a certain number of vehicles. If you buy another, it may not be covered. You may not have an Exemption to cover the Camper.

The day you filed, you established a BK Estate that exists for 180 days after filing. During that 180 days, the Trustee is in control of your BK Estate. That's all property, assets, monies, etc.

Just wait. Discuss your plans with your attny. See what the Trustee says/does at the 341.