Irs adjustment / tax refund went to the ch7 estate

[deyoonvaca]

I filed ch 7 in may of 2010. Was discharged in july. Case closes in july 2011 (asset case). I poorly filed my 2009 return, knowing the refund was going to the bk estate - i just received an irs notice that shows a large proposed negative adjustment to my refund.

If the irs is correct, and i was over-refunded, does that money come out of the bk estate or is it my debt? Remember, the case is still open until july, however the claim deadline has passed.

Please help me out with this one. I appreciate any help you can offer.

[HHM]

That is an interesting question, and I don't have a "certain" answer for you.

If the trustee has the refund, I would first try the path of least resistance, send that IRS notice you received to the BK trustee and see how he/she reacts. They may simply give it back (not likely, but you don't know 'til you try).

Next, maybe amend the BK petition and ad the new IRS claim to your list of debts. It will be a priority debt so it will get paid by whatever assets the trustee is holding. However, you will likely need a motion to allow late filed claim to get the trustee to pay it. If the case is still "open", you don't need to reopen the case or revoke discharge, just file the amendment.