341 was today...don't think it went well

[wellspring]

The trustee said " you got a very large tax return" I said yes.......then he asked what I spent it on. I froze at that point, because I honestly couldn't remember...my mind went completely blank and I said um food, clothing for my son.....then he said he wanted a list of what I spent it on. He didn't say receipts or ask for them and my attorney said to just include car repairs, etc. but I can't remember half the stuff. I know a few car repairs and paying the lawyer fees, one pretty high fuel bill for the winter, a new pc and printer..........geez what will happen if I don't remember enough to cover the full amount of the return??? The trustee said " send me that list and then you may or may not like the letter you receive from me" I was hoping that today the nightmare would be over.....guess not....

[freshstart06]

Dont fret, just do what your lawyer ask, most likely they will not ask for receipts, that will be hard to find but they need to know because they have to justify where your money when to avoid objections, in some ways he is helping you out. I would say car repairs, household items, food, clothes, I am sure you behind on a least two bills that you could have used the tax returns on. If you have kids or had medical issue that can take up a bulk of it. Whatever, your lawyer says use that information.

This is typical question, this is not going to mess up your bk if you answer. The worse thing that could happen, is that he will set up a payment plan for you to pay back that amount but this is rare. To be honest most of us "blow" our tax returns we suffer all year long and sometimes we just want to treat ourselves.

The meeting is over, that is a good thing. The worse thing that happened that he asked what you spent your tax returns on, it could have been much worse. Don't stress you will get through this.

[keepmine]

Your best source of information on where the money went would be your check register and bank statements.

[HenriettaHen]

Yes, consult your financial records and your memory and don't let this unsettle you.

Come on now! Just because the Trustee said the words "very large", doesn't mean it was actually VERY LARGE, relatively speaking. I'm sure you can explain it truthfully and satisfactorily.

These public people develop "ways" to jostle you a bit, just so they can see how you react.

I think you acted like an "honest debtor" - that deer-in-the-headlights look probably gave you away. Just write the list and tell the bald truth about that week or so when you had money to give yer kid something.

Get a good night's sleep, it'll be okay.

[SinkingFast]

We had Yo-Yo tax years before filing BK. '04 we got back a huge refund. Hubby was laid off and paid severance that heavily taxed. Next year, we paid big time due to cashing out a retirement IRA to live on. The Trustee wanted to see our '06 returns to see what a "normal year" looked like.

As attnys here would say, "The Trustee just wants you to explain what you did with the money."

The Trustee is looking for lavish, frivolous, or extravagant expenses. Did you take a trip to Vegas or did you fix the car type of thing.

Looking at your list, the only thing I see that's even semi questionable is the PC and the printer. But if you bought reasonable ones,....... Not high end models,........ I wouldn't even worry about those. Having a computer and a printer in this day and age is pretty much a necessity.

[wellspring]

Ok....this is what I've got and I mailed it to my lawyer today. I'm hoping this will satisfy the trustee. I also have to mail him my income tax return...not the check, but the return in April upcoming in 08. Don't know why, but he wants it. I couldn't account for all of the money, I'm about 1000 short, but I probably used it to pay bills of some sort and paid cash, like groceries. I use my return to fill in what my pay doesn't cover...believe me, it's not much with paying lease and utilities and gas being outrageous. I hope he doesn't take next years return from me because I won't be able to survive!!! I left the pc and printer off the list...just in case....and it wasn't a top of the line pc...it was a close out at Best Buy for 299.99, the printer, typical all in one for 40.00.

2/05/07 325.00 to Griffith Energy for fuel
2/05/07 115.00 to Household bank…paid off card
2/06/07 275.00 RG&E
2/15/07 900.00 to landlord for back rent owed
2/20/07 100.00 for contact lenses
3/02/07 423.00 Ball Joints for truck
3/06/07 177.00 Wiper Motor for truck
3/19/07 200.00 To Griffith Energy for fuel
3/26/07 101.00 Daycare
4/16/07 101.00 Daycare
4/20/07 101.00 Daycare
4/25/07 50.00 for consumer credit counseling
5/11/07 101.00 Daycare
5/12/07 950.00 BK attorney
5/18/07 101.00 Daycare
5/2407 425.00 4 Tires for truck
5/24/07 60.00 Wheel alignment for truck

Total: $ 4505.00

[BKOnce]

The trustee said " send me that list and then you may or may not like the letter you receive from me"

Man man man.... I really ...don't like that Trustee's attitude above at all. He/she would scare the hell out of me too if I were you. I sympathize.

[HenriettaHen]

I would put the PC and printer in as well. Now you have only 750 left for some freezer food stock-up and socks and underwear for the year.

All they want to know is what you did with it.

This list is quite reasonable. If you have receipts and canceled checks for any of these purchases, get the copies and give those to your attorney.

In a parallel universe, where you went out and blew 5K in tax return on a large screen television and a full-service cable package, the trustee was inclined to "inquire".

But here in the land of daycare and vehicle repairs?

I think you're safe.

[keepmine]

As we get into the 2nd half of the year, you can bet the trustee will take some portion of your tax refund in 08.
I gotta say, if you are depending on a tax refund to survive, bk really won't do you much good in the longrun. You must be able to support yourself going forward. You need to take steps to raise your income post bk.

[wellspring]

As we get into the 2nd half of the year, you can bet the trustee will take some portion of your tax refund in 08.
I gotta say, if you are depending on a tax refund to survive, bk really won't do you much good in the longrun. You must be able to support yourself going forward. You need to take steps to raise your income post bk.

I'm counting on my son to be finished with daycare in a couple more years so that alone will give me an extra 400 a month income. I am hoping to see what kind of financial aid is out there so I can go back to school and get a real career.

I guess I kind of felt singled out by that trustee that day....everyone else kind of breezed in and out with no questions asked and then BAM I get hit with what I spent my return on. I am hoping he will find my list acceptable; I mailed it on Thursday to my attorney and got a copy of the letter on Saturday that he sent to the trustee, saying "here is a list of my clients expenditures and she also understands that she will not spend any of her 07 return until she receives clearance from you." Hopefully, I will get a reply back soon, the anxiety is killing me. I hope he doesn't take the whole thing, but then again, if he does, at least everything else will be gone. I heard that the earned income credit was exempt?? I haven't asked my attorney that one, and my internet research tells me two different things........

[PaKettle]

As we get into the 2nd half of the year, you can bet the trustee will take some portion of your tax refund in 08.
I gotta say, if you are depending on a tax refund to survive, bk really won't do you much good in the longrun. You must be able to support yourself going forward. You need to take steps to raise your income post bk.

Just to clarify this is not true for all states or districts.
My attorney said they NEVER take income tax returns here in my district (Los Angeles) and I need not even adjust my W4 to lower the amount I get back because they will not take it.

Some districts apparently do take them. One's attorney should know whether it is likely or not.