what happens to your income tax refund

[jessegirl]

Being my discharge was extended another 90 days, what hapens if i get a income tax refund (which i don't think I will get much). Will I have to give that you to the trustee? Also, if hubby gets a raise or a bonus, will they take that too?

[magyar123]

Any specific reasons why your discharge was extended another 90 days?
And 90 days beginning when?

[debter08]

I asked that very same question. From my understanding, they will take it. Thats why we are waiting. We need it to pay the lawyer.

[jessegirl]

Any specific reasons why your discharge was extended another 90 days?
And 90 days beginning when?

We have been audited since oct from the UST for presumption of abuse.

[jessegirl]

But aren't you allowed to have a certain amount of money, exemptions to keep, depending on what state you are in? or will they just take whatever you get?

[TEW]

I would think you get to keep it since everything is as of date of filing

[jessegirl]

I would think you get to keep it since everything is as of date of filing

Thats what I was thinking too TEW, but some say no.

I thought it was as of file too? It seems every frigin corner I turn there is an obstacle. Its so depressing.

[magyar123]

We have been audited since oct from the UST for presumption of abuse.

90 days since sometime in October should be up sometime this month. Your tax return might not even have anything to do with the audit/discharge.

[Over our heads]

I would be prepared for the trustee to take part of your return. If you filed Oct. 1 of 08, he could presumably take 10/12th of your return. Why idk, but our lawyer said that is how they do things here in the great KC area.

So we are waiting until after we get our refund, which scares me a bit cause it should be a whopper. Pay the lawyer, get the vehicles a complete and total tune up attempt to start an IRA for the man, to replace the 401k we had cashed out at an attempt to keep up. Blah, when it goes to pot it really goes to pot!

If he gets a raise or a bonus, based upon my very limited self education, I wouldn't think that would apply since you have already filed. And, sneaky tho it sounds, if the bonus is a paper check, either hang on to it until after discharge, or have someone else cash it for you.

[HHM]

Tax refund is an asset.

The asset is either exempt or not.

If exempt (or if some portion is exempt), you get to keep that portion. However, this may require you to amend your petition to include the refund in your petition and claim the exemption

If it is not exempt, the trustee takes the refund.

[B65]

I used to exemptions

to exempt mine.

[myid4u2c]

It is simple, do not file or prepair your return untill after your dischage. You are ASSUNMING you will be getting a refund. You willnot accutally know until you prepair your return.

[HHM]

It is simple, do not file or prepair your return untill after your dischage. You are ASSUNMING you will be getting a refund. You willnot accutally know until you prepair your return.

Technically, that doesn't work.

The refund is EARNED during the tax year and therefore is part of the BK estate regardless of when you actually file your tax return.

[Mi Bankruptcy]

Here's what we did. However, we have to wait until our 341 next week to see if it works. We are CH7 no asset with plenty of room left in our exemptions.I hear it really depends on the trustee. Anyway heres what it looks like. We typically receive this amount back.

I don't want to hear anyone anything about I should get more in my paycheck. I chose to do it this way for a reason.

Schedule B
Anticipated 2008 Tax return $6,000

On Schedule C we listed:

We 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

[bkchap7filer]

I filed 10/14 and didn't list it in exemptions at all. At my 341 meeting on 11/14, the trustee looked at my last year's return and asked if it was correct. He did not mention any return for me or anyone else during my session at all. I am DUE to be discharged next week, would I have heard something by now if the trustee had interest in my return?