Chap 7, can my tax refund be taken?

[JGra]

Already went through the meeting of creditors 37 days ago. No mention of taxes being taken. I expect to get about 7,000 back. Is that something that will be taken? Should I wait until April to file?

[MSbklawyer]

Already went through the meeting of creditors 37 days ago. No mention of taxes being taken. I expect to get about 7,000 back. Is that something that will be taken? Should I wait until April to file?

The answer depends on whether your anticipated refund is property of the estate, because I don't see a specific exemption in Kentucky for tax refunds. http://www.bankruptcyinformation.com/ky_exemp.htm I would argue that since you filed prior to January 1, 2011, that you had no right to the refund at the time you filed, so therefore it did not become property of the estate. That's how I always handled it before Mississippi enacted a specific exemption for tax refunds. But you should research decisions in your circuit to see if courts have taken a position on that question.

[tcreegan]

Hi JGra,

People posting about tax refunds getting absconded, almost all reported the trustee mentioning it at the 341 meeting.

I would be "better safe than sorry" and wait until after discharge to file.

Tom in Colo

[daylate]

and you can always file an extension to put off receiving the refund even longer if you are concerned about it...so you could wait until case is closed-although I'm sure you need/want the 7k asap