Advised to wait and do taxes?

[Anonymous]

I was advised by my lawyer not to file tax return just yet. She told me "just wait and let some time pass first. Give the court some time to have Bk filing for a little bit".  Last year it was offset. Anyone advised the same..and for what reason? Creditor meeting is in 3 weeks. I was to get back about 3900 last year. I could really use the money to finish paying her and pay off my car that i plan to keep. I owe 2000 and am staying current.

[Anonymous]

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@Anonymous wrote:

I was advised by my lawyer not to file tax return just yet. She told me "just wait and let some time pass first. Give the court some time to have Bk filing for a little bit".  Last year it was offset. Anyone advised the same..and for what reason? Creditor meeting is in 3 weeks. I was to get back about 3900 last year. I could really use the money to finish paying her and pay off my car that i plan to keep. I owe 2000 and am staying current.

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I would say follow your lawyers advice because thats why you hired them.  I also think you are not allowed to pay large lump sums to creditors you pick during this time.  Hopefully someone can give more info on this.  I just remember my attorney saying I can keep up payments on my car but don't pay anything extra.  Good luck with your meeting and rebuild.  You will find a lot of knowledgeable people on here.

[Shooting-For-800]

your return is an asset.

if it was not listed as an asset during the bk, the trustee can reopen your case, take the return, and make your life complecated.

perhaps your lawyer believes the trustee will forget about it after a while after discharge.

[StartingOver10]

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@Anonymous wrote:

I was advised by my lawyer not to file tax return just yet. She told me "just wait and let some time pass first. Give the court some time to have Bk filing for a little bit".  Last year it was offset. Anyone advised the same..and for what reason? Creditor meeting is in 3 weeks. I was to get back about 3900 last year. I could really use the money to finish paying her and pay off my car that i plan to keep. I owe 2000 and am staying current.

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Check your petition to make sure the projected refund from the IRS is protected under your cash exemptions. Otherwise you may have to turn the refund over to the trustee.

[Anonymous]

I finished paying my attorney off today. 341 is Tuesday. Nervous. I did touch base with her in taxes, she said after meeting, I should be good to file them and there not be a prob. Assuming all goes well. We'll see.

[soldierpr]

You shouldn't have an problem after the discharge is final.  Note that if you do your taxes before the discharge date then you may have an problem becuase you are omitting informing that income. In my opinion, don't file until that discharge is in black and white. 

[Anonymous]

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@soldierpr wrote:

You shouldn't have an problem after the discharge is final.  Note that if you do your taxes before the discharge date then you may have an problem becuase you are omitting informing that income. In my opinion, don't file until that discharge is in black and white. 

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It depends on your jurisdiction. I am in Arizona and was discharged in January. I was specifically instructed by the trustee to send a copy of my 2014 tax return to the trustee and to send him my refund check when I receive it. He will take 10/12th of the refund and give me the rest. The reason he gave me is that, technically speaking, a tax refund is just accounts receivable due to you upon filing of the tax return. Since I filed in October, 10/12th of the refund was earned before I filed and 2/12th was earned after I filed BK. (My attorney told me this would happen, so it's common in Arizona).

Since the refund is an asset of yours, it technically belongs to the bankruptcy estate. Again, this depends on your state. Some states specifically exempt tax refunds. Since your attorney told you what to do, I would just listen to him unless you really don't trust him. He knows about the bankruptcy rules of his state better than anyone on this forum. 

[Anonymous]

I'm in MS. Clueless on how that works. And as far as discharge goes, that takes at least 60 days, right? April 15th is tax deadline. ?

[Anonymous]

Also, if no word is mentioned by trustee of taxes/filing at 341, should I just go home expecting I have nothing to worry about. Wouldn't they address all this at 341 ? If not, what will they do? Send me something in mail? Notify lawyer...?

[DaveInAZ]

Right, discharge has to be at least 60 days after creditors meeting. But you can file a 6 months extension from April 15 to file your fed taxes, if you expect to owe taxes you have to make a deposit for that amount, but since you expect a refund that's not a problem. You don't have to wait the full 6 months to file, you can file anytime - but best to wait untill you have that discharge in hand before you file. If trustee make no mention of them at your creditors meeting you should be good. And you can't make any 'special' payments to any creditors during BK. Yoiu can continue to make regular scheduled payments to secured creditors, but nothing more. After discharge & you have your refund you can pay the car off, but if the interest rate isn't too bad you might stick with the regular payments, it will help your credit rebuild.