Asset Case

[mesaverde]

I guess it's better to know that not ... checked PACER today and just saw that our case has been deemed to be an asset case. Waiting to find out next steps ... sighs

[mesaverde]

I just read the Trustees Petition and it appears that he wants our pro rata tax refund ... does this mean that he wants our upcoming tax refund or he's going after past years refunds?

[ValleYum]

From how I understand it, the trustee likely wants 11/12's of your upcoming income tax refund (if you filed your BK case in November). He is going to pro-rate it since they deem that you earn your refund over the course of a 12 month year.

Your lawyer could tell your for 100% certain though. Sorry about that!

[mesaverde]

We filed in October so I'm assuming that would be 10/12. I'm ok with that because our cars are paid off and the only thing in his Petition was our tax return. I just talked to our lawyer who tried to call the Trustee twice but wasn't able to reach him. He says he will get a letter from the Trustee with a dollar amount that he's looking for and then he'll negotiate a settlement. I am ok with this and knew that either our cars or tax return would be an issue. I'm just glad I know what he's thinking right now because the not knowing was killing me .. it's all good

[ValleYum]

I'm just the same way - I would be going nuts wondering, too!! I am glad you asked your attorney as well!!

Yay! Well at least it looks like that you can keep a little bit of your refund and most importantly both of your cars!!

[justbroke]

I just read the Trustees Petition and it appears that he wants our pro rata tax refund ... does this mean that he wants our upcoming tax refund or he's going after past years refunds?

You didn't try to exempt your "anticipated" refund? Did you file through an attorney? Just wondering.

[mesaverde]

Yes we did file through an attorney and I'm not sure what you mean by exempt our "anticipated" refund ... we were out of exemptions because both of our cars were paid for ...

[justbroke]

Okay, that's what I wanted to know. That is, if you had any exemptions left over which could have covered your "anticipated" tax refund. It is deemed "anticipated" because you wouldn't be aware of the amount when you filed.

This is all normal and this is the time of the year when Trustees drool all over themselves. It's Tax Refund season and it's "easy money" for them to recover for the Estate. As already mentioned, they will get a pro-rated portion. So if you filed in October, then they'd expect 9/12 (3/4ths) of the "anticipated" refund.

[mesaverde]

And that's all that was mentioned in his Petition re: assets so I'm fine with that ... I consider this a great outcome