Reminder: October is When Trustees Look for Tax Refunds

[feelingnutsy]

Thanks for the reminder---HHM---and if I file near the end of October---
and the look-back is April through September---what's the prognosis?

[tobee43]

i know we filed in april, but before we did our atty ask us to get our taxes done asap and if we had a return to spend it ASAP.....we had a huge return and spent it...like instructed.

it never game up at our june 341.

[drowning123]

What year taxes are we talking about? 2010? If that's the case, I wasn't asked to sign anything at my 341 and I'm in New York.

[tobee43]

What year taxes are we talking about? 2010? If that's the case, I wasn't asked to sign anything at my 341 and I'm in New York.

i believe for this oct.....hhm is referring to 2010 that we file in the upcoming months.

but he's saying oct. is the magic month. you filed prior to that so i would not concern yourself...

[october99]

So what if we expect no (or very very little) return for this year, but have received returns in the past?

There are two factors affecting this change. 1. I rolled over a 401k to Roth IRA in 2010 and will owe taxes on that 8k. 2. We changed DH's withholding to 4 when we started falling behind last Dec and never changed it back. So last I checked (prior to DH's unemployment) we were actually going to owe a bit of federal.

Does the trustee just indicate that if there IS a return they will take it? Then if there is nothing to take, case closed?

[newbie2]

So what if we expect no (or very very little) return for this year, but have received returns in the past?

There are two factors affecting this change. 1. I rolled over a 401k to Roth IRA in 2010 and will owe taxes on that 8k. 2. We changed DH's withholding to 4 when we started falling behind last Dec and never changed it back. So last I checked (prior to DH's unemployment) we were actually going to owe a bit of federal.

Does the trustee just indicate that if there IS a return they will take it? Then if there is nothing to take, case closed?

Yes, the trustee will just wait until you have filed your return and turn it in to them. No refund - no money for the trustee, then they
will close your case.

[HHM]

Yes, I am talking about tax year 2010 upon which you file your tax return in early 2011.

As was stated by another member, October is the magic month that starts Tax Refund season for Chap. 7 Trustees.

Yes, the trustees have the option to keep the case "open" until you file your taxes.

If you have already filed your case, you should have nothing to worry about this. This post is for those that have yet to file BK.

[drowning123]

Thanks, Tobee and HHM!

[mrskal]

What if you filed yesterday, October 11? We usually get a 3-4K refund, but this year my business is going to do half of what it did the last few years, and I also have not paid mortgage since April, so how will that affect me?

[markerz]

I just stumbled on this site, and I'm glad I did. I'm 26 and in Mount Everest of debt, all student loans, but a good amount of consumer debt as well. I just retained a lawyer today but havent started the paperwork, I need to get the money so I'm in a payment plan. I'm not discharging my loans as I know it's nearly impossible, although I'll be long dead before I pay my $400K and I'll never be able to live a normal life, but hopefully, the elimination of my consumer debt will ease the pain for the time being. But this caught my attention, they're gonna take my tax return????? I need that money!!! I need this explained to me by my lawyer or something. Like I said I'm glad I found this site, it's like a support group for getting through this, and I can say..... I'm nervous...

[waitonHim201]

True or false. Ive read that they only take the actually taxes taken out in excess of 1500. Excluding child tax credits and earned income credits.....

[HHM]

True or false. Ive read that they only take the actually taxes taken out in excess of 1500. Excluding child tax credits and earned income credits.....

Answer: neither

It really depends on the district, local custom, exemptions, and the specific trustee. Some trustees won't touch a tax refund unless it is over $1,000. Then there are other trustees that take whatever they can get.

[Detroit]

Interesting... now I understand why the trustee asked me at my Oct 341 if I still owe the IRS (ie, all refunds go directly to the IRS until the bill is paid and aren't otherwise available). Sneaky.

[oregonpilot]

I just stumbled on this site, and I'm glad I did. I'm 26 and in Mount Everest of debt, all student loans, but a good amount of consumer debt as well. I just retained a lawyer today but havent started the paperwork, I need to get the money so I'm in a payment plan. I'm not discharging my loans as I know it's nearly impossible, although I'll be long dead before I pay my $400K and I'll never be able to live a normal life, but hopefully, the elimination of my consumer debt will ease the pain for the time being. But this caught my attention, they're gonna take my tax return????? I need that money!!! I need this explained to me by my lawyer or something. Like I said I'm glad I found this site, it's like a support group for getting through this, and I can say..... I'm nervous...

Markerz. Glad you found it too. There are so many great people here. It's like a family group helping the others in the fam get thru some really tough stuff. Kind of like a family brainstorming problems and finding answers.
The only way i got to where i am is with the help of those here.

Ask questions, cry, express the ACKS, even rant. We understand!!
There are alot of people here that have such great knowledge. And if they don't have an answer they will try to find it ....

Best to you.

[dumpinmydebt]

Answer: neither

It really depends on the district, local custom, exemptions, and the specific trustee. Some trustees won't touch a tax refund unless it is over $1,000. Then there are other trustees that take whatever they can get.

Definitely neither. We told our Trustee we expect nearly $2500 and he doesn't want it.