tax return exemption law

[arf75]

Hi! I filed for bankruptcy on 4/10/06 had my 341 meeting on July 11, 2006. Went well I had not yet filed my taxes so I didn't include them in my original papers. I did my taxes in June and took a copy of them to my meeting. The trustee told me that I had to amend schedules B and C and exempt my tax returns. But I can't find the section code. I live in California by the way. Can anybody help?

[lrprn]

Hi! I filed for bankruptcy on 4/10/06 had my 341 meeting on July 11, 2006. Went well I had not yet filed my taxes so I didn't include them in my original papers. I did my taxes in June and took a copy of them to my meeting. The trustee told me that I had to amend schedules B and C and exempt my tax returns. But I can't find the section code. I live in California by the way. Can anybody help?

Welcome, Arf! A couple of quick questions first -
1. Now that you've done your federal and state taxes after filing, do you owe or are you getting money back?
2. Did you file Chapter 7 or 13?
3. Did you file with a lawyer or pro se (without a lawyer)?

Glad you decided to join us!

[arf75]

Hi!

I filed for Chapter 7 and I am getting money back. I filed pro se.

[lrprn]

Hi!

I filed for Chapter 7 and I am getting money back. I filed pro se.

Then it's your tax return money back your trustee wants added into your forms. It increases your income and gives him/her more money to give back to your creditors.

If you had filed with a lawyer, he/she would have advised you to send in your return and get the money back before filing bk (ours did). That way you would have been able to spend your return yourself rather than having to turn it over to the trustee. But maybe you didn't have a choice and wouldn't have been able to wait anyway. Oh well - at least you're on your way to starting fresh financially again, and that is such a gift!

[arf75]

The trustee told me he wouldn't take my tax returns. I already had my 341 meeting with no assets. He just wanted me to amend them and exempt my refund.

[lrprn]

The trustee told me he wouldn't take my tax returns. I already had my 341 meeting with no assets. He just wanted me to amend them and exempt my refund.

Excellent news! You have an understanding trustee - that is a great gift! Sounds like you are cruising downhill now....just a short wait until everything is set. Good for you!

[arf75]

Thank you!

I still need to know how to exempt my refund. I've been searching but I can't find the section code.

[confusedinVA]

Here in Va we have what is called a "wildcard" exemption. Any balance from homestead and/or personal property can be applied to the wildcard. I put my federal and state taxes under this exemption. Just remember that if you use part or all of the homestead exemption, there is a special form that you have to file with the county courthouse. (Iforget what it is called) It turned out that I still had personal property left so i just used the balance of that.

If this is not accurate I am sure someone with more experience will correct me. I sincerely hope this is accurate as this is the way I have done it.

Good luck.

[arf75]

Hi!

Thank you!

I think you're right about the wild card. The trustee specifically told me to amend my schedules B and C to show my refund and then exempt it. I don't see why he would lie to me if there was a way to exempt them.

Thanks again.

[anonymuse]

In Colorado, the tax refund is exempt. Could this possibly be the same in California?

[arf75]

I don't think California has that you have to use the wildcard. I think you can keep any extra assets that doesn't exceed a certain amount.