Please help me understand this...

[JGonz480]

My CH7 was discharged in september of 2008, filed in May. After filing my trustee requested I give him my $900 economic stimulus money which I did. Now here's the issue. I just found out via the IRS that I have to release my tax return to the trustee again! even though my case is discharged, and he will decide whether or not to pay creditors with this money. I don't understand how he can do this, my debts have been discharged and are no longer valid I thought. So how can this guy take my return? I filed without an attorney because my case was cut and dry, basically tons of debt, no income no assets. So I don't have an attorney to speak with and am wondering if I should seek one because this doesn't seem right. I qualify for Child Tax Credit, Earned Income Credit and Education Credit so this is my largest return yet and I NEED THE MONEY otherwise we are going to have to leave our house and move in with the in laws. HELP ME PLEASE!!!! I am in ARIZONA if that makes a difference. HELP IS APPRECIATED!!!!!

[xboxfan]

I'm sure someone will come by to either dispute or confirm this, but, from what I've gathered from the other posts here, if your case was only DISCHARGED and not yet CLOSED your income tax return for tax year 2008 is an asset of the trustee. If he does decide to keep it, this is the only one that he will get.

[AngelinaCat]

I think xboxfan is correct. If your case has not closed you could be in for trouble. Were you ruled an asset case?

[JGonz480]

I'm not sure, but I know that I didn't have ANY assets included in my ch7. Where would I find this out.

[laurannm]

ABoxFan is correct. 99% of the time if a trustee is interested in your tax refund they will leave your case discharged but not closed (two different things). Keep in mind though that since you filed in May, the trustee is only entitled to 1/4 of your refund. How much were you expecting back?

Do you have a Pacer account? You can check the status on there.

[JGonz480]

I am expecting 4875.00

[BrokeAzzez]

but what if on Pacer it shows you are dishcharged and closed yet the trustee still wants your taxes, can they take them still?

discharged 02/04/09
closed 02/06/09

[JRScott]

I am expecting 4875.00

I can see why the Trustee would be interested in this. As someone else stated this will be prorated or should be. Only the amount of tax paid prior to your filing date can the Trustee take. They usually look for amounts over a thousand dollars. Since 1/3rd of the year had passed by the time you file then he is ultimately entitled to take approx 1/3rd of it for distribution to your creditors.

Now on an unrelated matter, you need to adjust your withholding. There is no reason for you to allow the government to borrow tax free from you 400 dollars a month. That's probably what has led to some of your economic hardship.

[JRScott]

but what if on Pacer it shows you are dishcharged and closed yet the trustee still wants your taxes, can they take them still?

discharged 02/04/09
closed 02/06/09

Generally Trustees do not take tax refunds for closed cases unless the clerk closed it in error. They would have informed you if they required such funds but without an open case they couldn't distribute it.

[JGonz480]

Wtf!!!!

Okay so I got a letter from the Trustee and the ******* is taking my entire refund $4875- Federal $257- State. How can he do this, I only made 16K last year and only worked 1/3rd of the year. Should I seek an attorney?

[dogbone33]

Okay so I got a letter from the Trustee and the ******* is taking my entire refund $4875- Federal $257- State. How can he do this, I only made 16K last year and only worked 1/3rd of the year. Should I seek an attorney?

They don't care what you make... We are going through the same thing. We get child tax credit and earned income and should've gotten back like 8-9k. But we had my mother claim our children and she got our credits and is giving the 6k to us. Our lawyer said it was ok for her to claim them. With out the kids we are getting back 500-600. Someone said they might not want it since it is under 1k. I still don't think they should be able to take the child tax or earned income, but what can ya do? I don't know if an attorney would help you since you should've hired one for the entire process to protect your a**. Good Luck, hope you get to keep it. I know we need ours since we have to move.

[freelancer47]

Just a small footnote.. The Earned Income Credit should be exempt under your state or federal law, since that is sort of a "welfare benefit-by the government", be sure to tell the trustee this.
I am PRETTY SURE YOUR EIC is exempt, HOWEVER, I don't know about the Child Care Credit or the Educaution credit, but I am pretty sure the EIC is exempt...GOOGLE YOUR, states laws regarding bankruptcy exemptions and it should list something about the EIC the EXACT LAW exempting the earned Income credit..

Melissa

[Tbornetun]

The EIC is exempt from the trustee to take. I also believe that the trustee is only entitled to 5/12 of the remaining balance but of course I am unable to locate the info on this tonight. I can't remember if it is in the code or on the US Trustee website.

[dogbone33]

The EIC is exempt from the trustee to take. I also believe that the trustee is only entitled to 5/12 of the remaining balance but of course I am unable to locate the info on this tonight. I can't remember if it is in the code or on the US Trustee website.

Our lawyer told us they can take it.

[JGonz480]

Yea the in the ****er's letter he is asking for every penny!!! What do I do, I can't afford to give him this money I will lose everything. I am considering just keeping it and saying **** it. I don't know what I'm to do.