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Tax refund after chap 7 BK discharge

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  • despritfreya
    replied
    When in doubt contact your attorney. If you do not have one, contact the Trustee and ask. Unless there is an exemption that applies (I do not know if filing separate returns is another way to protect, at least, your husband's portion) a Trustee is entitled to a pro rata share of the refund based upon when you filed. You filed in 9/10. The Trustee would be entitled to 9/12ths of the refund. Remember, a Discharge only ends your issues with the Creditors. It does not end the administration of the case - so, unless the case has been closed, this is potentially an open issue.

    Des.

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  • daylate
    replied
    If you are already discharged and the trustee hasn't yet asked, I think you are ok.

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  • one1luv629
    started a topic Tax refund after chap 7 BK discharge

    Tax refund after chap 7 BK discharge

    Hi... as tax season is upon us, I have a question I can't seem to find the answer to.

    I filed Chapter 7 BK on 9/2010 and was discharged on 12/2010. I am married but I filed BK as an individual (husband did not file). We are getting ready to do our tax returns and was wondering if the trustee can take any tax refund we might get since my BK was discharged over 3 months ago?

    I am an independent contractor and I barely made any money in 2010. My husband is the one on a W2. If we get any tax refund at all, it will be because of my husband. If the trustee wants to take our tax refund away, will they divide up the amount based on the fact that my husband did not file BK and only take my portion away? Is it smart to just file separate returns this year? I would rather file jointly if I know for sure the trustee will not take our refund away since we will be getting $2000 more vs. filing separate. We can really use the money.

    Please help! Thanks.

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