just looking for experiences or stories...

[itsladyliberty]

we aren't able to find any way to exempt our 2008 tax refund (we filed ch7 pro se 12/22 in idaho, 341 is on 1/29 [YIPPEE!! sweating bullets just thinking about it!] and we usually file our taxes in early february, get a refund by direct deposit a few weeks later) but i'm wondering if anyone has any experiences or stories regarding the trustee taking (or leaving alone!) a tax refund in a similar situation.

income for 2008 will be around $19k,
assets just over $5k,
debts are around $40k,
anticipated refund will be $6k.

we have two dependent children and about $4k of that refund will be EIC and child tax credits.

from what i've read and understand, the trustee CAN take this tax refund but in some cases, if it's not considered a "meaningful recovery" they won't bother. in my head, $6k isn't a whole heck of a lot to distribute, given the amount of our debt. what do you think? not asking for any legal advice, just curious if others have input or stories of their own. we're fully expecting to give up our refund but it would be a VERY nice surprise if we didn't have to, of course. ;)

the kids are napping and i'm just looking for a little something to read, so any input would be appreciated.

[AngelinaCat]

Welcome to the forum, itsladyliberty. I can't answer this question directly, as my husband and I owe about 22K in IRS, so we haven't seen a refund in many a year.

However, when we were at our 341, Feb. 7, 2008, the lady that was taken ahead of us was expecting a return, as well as a 'stimulus check'. The trustee cautioned her not do anything with the refund or stimulus check w/o checking with him first. She was filing pro se.

I am sure some of the other members will jump in with their stories. Good luck!

[CatsInTrouble]

No story, just my lawyers advice to me: file taxes and spend the money before you file the BK.

ok!

[okiemom2008]

No story, just my lawyers advice to me: file taxes and spend the money before you file the BK.

ok!

How soon before? Could you for instance get the direct deposit one day, spend it the next and then file the next? Reason I ask is because we are filing first of Feb. at the latest and probably will get the refund around then. I figured they would just take it but if we could possibly buy a used vehicle or put it towards something like student loans that would be awesome!!

Thanks

[itsladyliberty]

thanks everyone any other input would be great.

we're really not terribly worried about it. like others have said, $6k is a small price to pay for the chance at wiping out $40k of debt. we'll gladly turn over our tax refund. as gladly as one can give up a check that big without crying, i suppose.

i looked on PACER and there's a notice that has been posted but not yet arrived in our mailbox telling us we are ordered to turn over any tax refund received while our case is open. something tells me that even though our 60 day wait till be up 3/30/09 assuming all goes well at our 341 on 1/29/09, (and our district is incredibly fast at closing discharged cases!) the trustee will keep our case open till after we file and receive our refund.

[willsurvive]

Hi! I'm a fellow Idahoan. What district are you in if you don't mind me asking? Our 341 is on Dec 31st. Nervous, but ready for the next step too.

We were told by our attorney that the trustee more than likely will take our refund, but not any EIC. We owe employer taxes, so we are hoping any refund will first be applied to the money owing, and then if any left over the trustee will take it. Our case will not be discharged fully until we have our taxes filed and turned in to trustee.

Good luck!

[itsladyliberty]

Hi! I'm a fellow Idahoan. What district are you in if you don't mind me asking? Our 341 is on Dec 31st. Nervous, but ready for the next step too.

We were told by our attorney that the trustee more than likely will take our refund, but not any EIC. We owe employer taxes, so we are hoping any refund will first be applied to the money owing, and then if any left over the trustee will take it. Our case will not be discharged fully until we have our taxes filed and turned in to trustee.

Good luck!

we have more than one district? i'm in boise.

good luck to you!

[willsurvive]

Well, our 341 is in Pocatello, so I guess we do have more than one district?

[okiemom2008]

No story, just my lawyers advice to me: file taxes and spend the money before you file the BK.

ok!

same thing here.

[jandrl2001]

this whole thing just makes me nervous, i asked my lawyer if i could exempt the refund and he said there was no need to, we are no asset 7, and we have 20k of exemptions we didn't use. any advice on that, does a no asset protect more than asset case?