I have already retained an attorney to file a Chapter 7 bk, I have not filed yet. However my tax lady just amended by 06 and 07 taxes and she is telling me I am getting 7k back. What should I do, I want to get my BK done an over with, however would they get my amended tax return? Should I just file and not tell them? Help please!!
-
-
You need to spend this down and then file chapter 7. My spouse and I recieved over 5K and spent nearly all of it on car repairs, dental work, dr visits, contacts, costco groceries, clothes and some other smaller purchases. We then filed one month later. We were told by our attorney that no way did they want us to file with money like that in the account and the trustee would have no problem with this as long as purchases were not luxury like vacations, furniture, etc. If there is significant cash in your account the day you file, closing your bankrupcty after dischare could take a long long time.From this day on I move FORWARD!!!
Filed Chapter 7 on 3/20/09!
Discharged 6/2009
-
novayalife is correct. You can spend your tax return in full before filing. Just don't spend it on vacations or other luxuries. Make a list of everything you need, prioritize it and get those things. You may need a new water heater or carpet, or food, or clothes, or eyeglasses, or whatever. As long as it is spent on necessities, you're fine.Comment
-
Bottom line is that you must receive and spend your tax refunds before you file bankruptcy unless you have an exemption in your state that will cover the amount.
Also, just out of curiosity, what did she amend to make such a huge difference?Comment
Comment