Tax Return and Chapter 7 questions?

[Mark80]

Something I did not know about was that you have to turn in your tax returns to the courts once you file. I have some questions in regards to this if anyone knows the answers.

1. Do they take your refunds?

2. I should be discharged by the end of January and I don't usually get my stuff filed until closer to April. Will they hold off on discharging my case until they see a return?

3. Since my wife works as a freelance writer she had a handful of small jobs before my filing date. I think she made around 60.00. I was told not to worry about it since it was such a small amount on my filing. However since the filing date she has ramped up her work to help catch us up. Obviously I have to report her income on the return which will show she made the 60 "before" the filing date. Or at the very least that she was freelance writing at random for the past few months. None of this was in my filing as it was such a tiny amount. Does anyone think this will cause a problem? Should I not file jointly with her this year, or possibly not report the small amount of income on my initial return and pay a penalty on it later on?


Thanks for the advice!

[laurannm]

Since you filed so late in the year, the trustee will most likely take his/her portion of the tax refund (unless you exempt it). You'll still get your discharge on time but the closing of your case will probably be delayed until the refund is received

[Mark80]

So the trustee takes all of your refund? Is this the only reason they need your tax return, to see how much of a refund you got?

I guess thats to be expected, however its kind of weird that if you file earlier in the year you don't have to hand over any money. How do you find out if your exempt from handing it over?

[OtisMyMan]

Our lawyer told us that our refund will be exempted. We typically get 2-3,000 back. Ask you lawyer if they listed it.

[laurannm]

So the trustee takes all of your refund? Is this the only reason they need your tax return, to see how much of a refund you got?

I guess thats to be expected, however its kind of weird that if you file earlier in the year you don't have to hand over any money. How do you find out if your exempt from handing it over?

Part of the reason why it is less likely for a trustee to take your refund the earlier in the year you file is because they are only entitled to the amount up to the date of filing. So for example, we filed in July of this year, which means the trustee is only entitled to 1/2 of our refund. Since they are only entitled to part of the refund, if the refund is typically small than it probably isn't worth the effort to go after it.

[Beeheery]

If we are filing ch 7 this December, but will not be discharged till 2009, do we include our 2007 or 2008 tax return paperwork? TIA.

[Mark80]

I wont be discharged until 2009 either, but they told me they wanted the 2008 return.

[Mi Bankruptcy]

Our 341 is not scheduled until Jan 09. I am CH7 no asset. So, I don't actually know if this will work.

We had plenty of room in our exemptions and were well below the median for the size of our family and income. I told our attorney that I wanted our 2008 tax return exempted( filing in 2009). He said he wasn't worried about it because of where I was on the median and my exemptions. I told him I wanted it listed anyway. He listed it on

Schedule B
Anticipated 2008 Tax return $6,000

On Schedule C He listed:

He put "Anticipated 2008 Tax Return"
(Husb)11 U.S.C. 522(d)(5) $3,000
(Wife)11 U.S.C 522(d)(5) $3,000