Next years tax refund - trustee leaving case open?

[AfraidOfBK]

can one's case be discharged, but not closed because the trustee wants next years tax refund? I.E. - If I file in July and use no NV wildcard exemption to cover my tax return, lawyer says trustee is eligible to receive 7/12 of my 09 refund.

Will they leave my case open just to claim this, or once Im discharged can they close it and THEN take it?

If they leave it open, does that mean Im still being "watched" as far as my spending, accounts, and other finances go?

[spidge]

AfraidOfBK, me to.
I would think that you could adjust your witholdings using a W-4 with your employer to reduce or eliminate any refund, but then your disposable income would go up to. Iether way you will likely pay. What if you increase your 401k percentage. I think this is allowed, but I could be wrong.

[lrprn]

We have had a few members who were consistently receiving large refunds each year. After they filed Ch 7, their trustee discharged their case on time but didn't close it to see what size refund they received the next year. If the members would have received another large refund, the trustee would have taken whatever they were entitled to take of it to distribute to their creditors.

Luckily these members were smart and did what Spidge recommends - increased their withholdings to ensure they received very little return. Once the trustee didn't see much to take, their case was closed.

Trustees vary widely in how they deal with tax refunds, so there's no way to predict accurately what's going to happen in any specific case. If you file with a lawyer, he/she can give you reliable advice about what to expect with your own trustee.