tax refund

[jdhere]

Alabama resident here expecting ~$8000 tax refund. The refund I received early this year for the tax year of 2008 is already spent long ago. What will happen to my tax refund for the year of 2009 if: I file in early November,2009 - will receive my refund in March, 2010? Will the trustee take this refund even though the case should be discharged by then???
thanks

[HHM]

Unless your state has an exemption to cover it, that upcoming refund is toast (except any portion that may be related to Earned Income Credit).

Big picture, it is usually a small price to pay. Or, you can wait to file your BK until after you receive and spend the refund.

[aces67]

If your lawyer can exempt it then you will get it otherwise the trustee will take it.

[backtoschool]

In some districts the trustee does not automatically take the refund and in some districts the trustee automatically takes the refund.

In my district refunds have to be asked for specifically by the trustee and put in the asset report. I thought mine was toast (my future 2009 refund) but for some odd reason the trustee has missed it. (of course it ain't over 'till it's over....) I talked with my lawyer about this and she says that if the trustee did not mention it at my 341 and left it off of his interim report and asset report, then he is not going after it.

We'll see.....

[Mi Bankruptcy]

We were CH7 no asset with plenty of room left in our exemptions. In this case you would do 2009. The issue is you want to try to exempt it. You don't want to go about your business thinking the trustee didn't want it and then you spend it and they come back and ask for it later.

I read a case where this happened to a lady in Michigan. The judge looked at the paper work and said.. well she didn't exempt it so the trustee has the right to the refund. The return was important to me because I was going to use the refund to pay off vehicles that I reaffirmed in BK. My attorney initially told me the trustee doesn't take returns so I shouldn't worry about it. I sent him a copy of the case and told him to exempt it...Period..

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

[backtoschool]

We were CH7 no asset with plenty of room left in our exemptions. In this case you would do 2009. The issue is you want to try to exempt it. You don't want to go about your business thinking the trustee didn't want it and then you spend it and they come back and ask for it later.

I read a case where this happened to a lady in Michigan. The judge looked at the paper work and said.. well she didn't exempt it so the trustee has the right to the refund. The return was important to me because I was going to use the refund to pay off vehicles that I reaffirmed in BK. My attorney initially told me the trustee doesn't take returns so I shouldn't worry about it. I sent him a copy of the case and told him to exempt it...Period..

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

I totally agree that the OP should exempt it. In my case, I have emotionally kissed that return goodbye, so if I get to keep it it is a bonus, if I have to give it up, then I will file a 1040EZ and let them take whatever comes out as a result of that.

[jdhere]

tax refund

Thanks for your suggestions and insight. I am feeling the stress of this process!

[OhioFiler]

Thanks for your suggestions and insight. I am feeling the stress of this process!

Avoiding much of the stress is the reason for planning your BK and visiting our little community here.

[ace13]

Pennsylvania resident here...my attorney advised that we will "claim the refund as exempt. We will estimate the amount carefully."

Currently my house is underwater and apparently there is a portion of the homestead exemption we can use for other things. That's what I understand from my attorney. Good luck to you.

[Walangatik]

Does this apply to any state? I am in CA. and I need to amend my schedule b and c to exempt my taxes.

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

[jdhere]

tax refund

talked to my lawyer today here in alabama. lawyer says in this district, the tax refund coming next year for 2009 tax year is an after asset and will not be touched - it will belong to me. we shall see , my bankruptcy 7 will be filed next Friday.

[Hope2File]

We were CH7 no asset with plenty of room left in our exemptions. In this case you would do 2009. The issue is you want to try to exempt it. You don't want to go about your business thinking the trustee didn't want it and then you spend it and they come back and ask for it later.

I read a case where this happened to a lady in Michigan. The judge looked at the paper work and said.. well she didn't exempt it so the trustee has the right to the refund. The return was important to me because I was going to use the refund to pay off vehicles that I reaffirmed in BK. My attorney initially told me the trustee doesn't take returns so I shouldn't worry about it. I sent him a copy of the case and told him to exempt it...Period..

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

We didn't split ours out like that. I hope its not going to be a problem. I was prepared to give it up but then realized how much of the homestead exemption we had left.

[LostNFound]

I've been wondering about our tax return as well. Do we file now or do we wait until after our tax return (generally about $5-6K). As I mentioned in an earlier post, I will need a car because mine is a lease.

However, my question would be....wouldn't the trustee question how you spent the money? Or where it went? Because I would seriously hold off my creditors until after my tax return, but I'm concerned that the Trustee will question what I did with $6K. To which I would say, "Oh, it's in the safe with the rest of the cash I'm banking to replace the car your going to take from me?"

Ummmmmm, no. Lets just say, I'm not good at making up stories and I will probably make myself appear more guilty just by opening my mouth. I feel like they've seen it all and I'm going to be the one to get into trouble--make an example of me then.

Personally, I always thought bankruptcy would be simple. Its so complicated and the rules twist and turn....I need a good lawyer. Wish we could get in to see one soon!! No one will talk with us over the phone!! And the paperwork is LONG......ugghhh...

[florida]

Does anyone know about the state of Florida? We will be filing in December.
Can we keep it??

[nerves]

LostNFound - I am not sure about your 2008 return but if you file in 2009 - you will probably be able to keep only $1000 each in IA. That is what our attorney advised us. However, he did state that some TT do not go after the return so we may be able to keep all of it. It will all depend on the TT appointed to our BK. We are filing tomorrow! I am nervous, stressed but looking forward to seeing the light at the end of the tunnel. I think our 341 will be 11-23-09. I will be glad to have that over with before the holidays.