Tax refund from *two* years ago

[manglicmot]

I have not filed yet, but I turned in my C7 paperwork last Tuesday. The paralegal told me it would be ready to file in 15 business days which is fine by me since I'm only in default on one account right now anyway.

Yesterday I got a letter from the IRS saying that I am getting a $450 refund on my 2005 tax return. The reason I am getting the refund is because of capital losses from stock investments that year. I didn't report them the year I filed because I didn't think I had to, since it was a loss. But the IRS had noticed that I had income from stock sales as reported by my broker, so the discrepancy caused them to examine my 05 return and force me to send in the apprpriate schedules to correct it.

I called my attorney's office a few minutes ago to let them know I have another refund from my 05 return and I was told that it is mine to keep. She seemed to hesitate and stutter a little bit as if she was unsure, but she explained that since I have not filed yet, it belongs to me. I *hope* she is right, but she sounded a little unsure which makes me feel a little unsure.

Could she be wrong? Is this going to be part of the BK estate?

[HHM]

Don't worry, it is yours, and the amount is too small for the trustee to show interest, generally speaking, the trustee is going after assets in excess of $1,000.

Just spend it, or whatever, when you get it...it is still a "cash" asset, so you need to do something with it, i.e. spend it, or exempt it.