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Due a Tax Refund: Can it get "held up" in an OPEN CHAPTER 7?

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    Due a Tax Refund: Can it get "held up" in an OPEN CHAPTER 7?

    We are about to file our taxes and are in the middle of a CH7 (341 meeting in late March) It looks as if we will get a tax refund:

    Can a income tax refund get "held up" by the IRS in an OPEN CHAPTER 7?

    Another words, Is there any reasons for us NOT to get our refund due to our open CH7?

    Anyone with any experience with this?

    Thanks, techno

    #2
    Generally the IRS does not hold up the refund unless instructed to by the trustee.

    Do you have the ability to exempt the refund, has the trustee asked to see your tax returns?

    Comment


      #3
      Called my attorneys office yesterday and they told me to go ahead and file and then tell them the amount of the refund.... and that it should be no problem to exempt it.....

      and they said they would send in an "amendment to the paperwork"

      The trustee has NOT asked to see our 2007 tax returns...(the attorney wanted our 2006,2005, and 2004 returns. Our 341 is set for the very end of March...

      I was reading somewhere on the forum that the IRS "held up"
      their tax return during an open BK.

      I am not sure to file our income taxes before our 341 or after (or does it even matter)? And also wether to get a direct deposit or a check? '

      Any input? I super appreciate all the help you have given me here and all your answers seemed to turn out to be true.

      Thanks, techno






      Originally posted by HHM View Post
      Generally the IRS does not hold up the refund unless instructed to by the trustee.

      Do you have the ability to exempt the refund, has the trustee asked to see your tax returns?

      Comment


        #4
        the only reason that your tax refund would be held up is if you had taxes included in your bankruptcy. They your filing would be open until the bankruptcy is closed and the IRS tagged your account has closed.

        Comment


          #5
          If your attorney is sure he can exempt it, no problem, just file and have it direct deposited to your bank account. If you are not sure it can be exempted then you may want to get it by check and just hold on to the check until after your 341.

          You should know for SURE at your 341 whether or not it will be exempted.
          <<I am NOT an attorney, my comments are anecdotal only. Contact an attorney for advice>>
          FINALLY DISCHARGED 92 DAYS AFTER THE 341! A NEW START!!!

          Comment


            #6
            Originally posted by PaKettle View Post
            If your attorney is sure he can exempt it, no problem, just file and have it direct deposited to your bank account. If you are not sure it can be exempted then you may want to get it by check and just hold on to the check until after your 341.

            You should know for SURE at your 341 whether or not it will be exempted.
            Any refund I get will be long spent by my 341- on bills and household items. (i.e., food, couch, curtains, electric bill, phone bill, rent, ect.....)

            Hope thats ok with the trustee....??

            Thanks, techno

            Comment

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