Tax refund Question

[phoenixel]

When I filed my chapter 7 I had health insurance for myself and my children as of NOV. I won't have coverage for myself so I will be looking into getting coverage in Jan. Problem is Im barely getting by and I would use my tax refund to pay it for the year but after reading I heard the trustee can take your refund. Which I didn't list on my schedule because I thought it had to be in your hands at the time of filing. Does anyone have an idea. Thanks so much

[Lightning]

Yes, the trustee can take your refund.

Have you priced individual health insurance plans? You'll either pay a high monthly premium or owe a high deductible. It will not be cheap. Unless you're getting several thousand back that's untouchable by the trustee, It might not help much. You'll at least owe co-payments for everything. Plans with no deductibles will cost a fortune

[StaciMM]

The trustee can claim part of it, but not all. (Unless you file on Dec. 31.) He can claim a % to match the % of the year that had already passed when you filed. If you filed on 9/30, for example, 75% of the year was over so the trustee could ask for 75% of your refund.

On the bright side, child tax credit & earned income credit are not up for grabs-only actual income tax refunds. Keep in mind if you get a refund, that is money you earned and were owed at the time you filed even though you can't get it til later.

If you have a wild card available, you can amend your petition. There should not be a charge if you're not adding a creditor.

When I filed my chapter 7 I had health insurance for myself and my children as of NOV. I won't have coverage for myself so I will be looking into getting coverage in Jan. Problem is Im barely getting by and I would use my tax refund to pay it for the year but after reading I heard the trustee can take your refund. Which I didn't list on my schedule because I thought it had to be in your hands at the time of filing. Does anyone have an idea. Thanks so much

[phoenixel]

Well I do get a large income tax back every year about $4000.00 that is with the child tax credit not eic. I did find a basic health coverage for 275.00 a month plus $10.00 co payments and no script coverage but will have to wait to pay for this. Was just hoping I could mention this in my schedules or at my 341 meeting which I have no date yet. Thanks so much for helping me

[StaciMM]

If most of your refund is child tax credit, you shouldn't have too much to worry about. Its only your federal withholding which will be claimed by the trustee, or a % of it. It will delay the process-you'll have to hand the check over most likely and then get your part back.

You could probably adjust your tax withholding to 'exempt' for the rest of the year, to not pay anymore in for 2005.