What If I do not do my exit counseling

[TomBrady]

I am unhappy about how my BK has been going, my trustee wants me to turn over roughly 7K money that I do not have, what if I do not do my exit counseling is my understanding right that the case must be dismissed and then I can file again in 45 days after I convert all of my assest into exempt assests. The big fight is over my Tax return of 4K that my lawyer said would be exempt and now the trustee is challenging that exemption. I thought it would just be easier to allow the case to be dismissed take the money and convert it into exempt assest and then file again in 45 days with almost the exact same petition that my lawyer filed only modified to match the new circumstances. Is this a reasonable idea?

[Stilltheone]

I've never heard of "exit counseling"...To my understanding, there are 2 classes...one you take before you file and one you take after you file. I always thought that the 2nd class needed to be taken before the 341 meet. Did you already have your 341?

[keepmine]

Thing is, the trustee may not dismiss the case. Just go right for the refund.

[TomBrady]

Thing is, the trustee may not dismiss the case. Just go right for the refund.

How can he not dismiss the case if I did not complete the legal requirments in order to close the case?

[jp2861]

How can he not dismiss the case if I did not complete the legal requirments in order to close the case?

I don't believe they need to dismiss the case. They can simply close it, without entering a discharge. Then you need to file a motion a motion to reopen the case. I think I read where the trustee can continue to administer the case, which means he can still come after the money. I'm sure an expert can talk more to the subject of the difference between dismissal and discharge, and what the trustee is entitled to do with assets.

[keepmine]

What jp posted is pretty righton. Once a Chapter 7 is filed, a bk estate is created and the trustee is the one driving the bus. They don't have to let you out of the trap.
Have you run this thought by your lawyer?

[FreshLikeADaisy]

Tom, I don't think is a good idea; there is every chance that such action on your part would be viewed as an attempt to manipulate the system (which of course it is but you don't want to shout it from the rooftops) and further damage your chances of getting the discharge you're hoping for, now or in the future.

I guess, at this point, the major question you should be asking yourself is this: "Is a Chapter 7 discharge worth $7000 to me?" If your trustee has his heart set on that and can back his position, then your best bet would be to have your atty try to negotiate it down, not fight it altogether. If you are discharging tens of thousands in your Ch7, then seriously... think about giving up the tax return.

I know this isn't what you want to hear, and I'm sorry. But don't throw away tens of thousands of dollars worth of discharge over $4k of tax return. Keep a level head about you and think it through. And *don't* do anything that will make it look like you're gaming the system! Repeat filings, while sometimes unavoidable, are not welcomed with a smile and a wink. So don't go there unless you have to. Good luck!!!

[PaKettle]

I agree with Fresh, I think you are better off allowing the $7k be taken rather than screwing up your Ch. 7.

If you owe a lot of money, surely giving up $7k that you don't even have in hand yet, is better than not being discharged...?

That does suck though, and I feel for you. Maybe you can negotiate it down... But if the Trustee is accustomed to taking tax returns, there probably isn't much you can do about it.

[soleprop]

is it possible to look up local case law and find instances in which your district considered tax refunds exempt? maybe you could present this information (if it exists) as support for your case.