Totally Confused!

[CAREBEAR]

We had our 341 today. We're doing it pro-se. We had a $4900 tax refund in March. The $ was spent on auto repairs, property taxes and emergency dental work. She didn't care about that. She informed us that our ch7 would be an asset case. She said that our tax refund for next year is hers and had us sign a power of attorney letter to that fact.

I work at the same bank that holds my mortgages, 1st & 2nd. My check is always drectly deposited into my account so that they may deduct the mortgage payment. She stated that since it was deposited, $790, on the date we filed, it belonged to her too. Even tho it was immediately debited.

All of this just doesn't seem right. Can anyone help me with a way of fighting and changing these two problems.

[Minnymouth]

Okay,

These are a fine example why people who file pro se should really do their research on filing bankruptcy.

All the "little things" that the trustee can do like taking funds in checking account on the day of filing, and taking income tax check the next year..... people do not know about unless they do their research........

Having an attorney would have avoided this......

Hopefully the trustee will not find anything else that he can work with....

Fighting to get it back - won't work - won't get it back....... its all an asset that the court allows the trustee to seize....

Keep us posted.

[confusedinVA]

I am not sure if this is appropriate or not, so please forgive me if it isnt.

Could this have been avoided if the filer would have claimed the tax refund as an exemption. Ex. My state offers a wildcard exemption and the amount is any balance of homestead and/or personal property. I had enough of a balance to apply the wildcard exemption on our tax refund for 2006. I hope I did this correctly. Also, dont you have within 3 days of the trustee meeting to file an amendment? If the filer was to amend and add her taxes on her wildcard or whatever exemption, would that work?

[carla107]

It sounds like the trustee was heartless. I had a tax refund of over 5000 In March and had my 341 in June. When the trustee asked what it was spent on, I said to get caught up on my sons tuition (private school due to learning disability) and car insurnce. He seemed to be O.K. with that answer. My case has not been discharged yet but he did not seem to be too concerned with it after that. I think mabee you can change your dependents so you wont get any tax taken out of your pay. therefore you wont get too much of a refund. Go on lawyers.com and ask an attorney for advise they will answer you pretty quickly. Another thing, sometimes if you think about what the total outcome of the situation ( how much you were able to keep or how much debt you were able to get rid of it is easier to swallow something like this. Good Luck to you!

[FoolAndHisMoney]

Even though you paid your mortgage with the 790 since it was in your account the day you filed even for a minute it became part of the estate. No offense but I have to go with Minny on this one. You have to research bankruptcy night and day and still save money for an attorney even if it means eating rice and beans every day for months. I give this advice because it's what I am doing and I wouldn't tell someone to do what I wouldn't do. Sorry about the tax refund and hope it all works out.

[djk]

welcome. as somebody already mentioned change the number of exemptions, I think you can take 2 personally and 1 for any child you have. this will act to reduce what you seemed to have already signed over to the trustee. what state are you in?

[cr2285]

Take the max irs exemptions allowed, regardless of how many are in your household. That way, your refund will be reduced. If you end up having to pay, even better, your trustee gets $0.

I rec'd a $2,400 refund last year, so my atty advised me to change my exemptions right after filing.

[cr2285]

Take the max exemptions allowed for the rest of the year. That way you might be able to reduce your '06 refund to $0.

I had a $2,400 refund in '05, so my atty advised me to change my exemptions as soon as I filed.