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New Contributor
LTrain823
Posts: 82
Registered: ‎04-25-2007

Tax refund check before or after BK???

Hello everyone, can someone please tell me what the trustee does in this case? I just filed my tax's today and I'm exppecting a pretty hefty check. I have been looking forward to this for a very long time now but now I am planning on filing BK soon and was wondering what happens to the money. My CPA said not to file BK until you get your tax returns and then cash it. She is obviously not a BK lawyer so she didnt know what consequences may happen but what can a judge/trustee do if I get my tax returns and then just cash it. Not deposit it anywhere but literally just cash the check and leave the cash in a safe or something. What is the worst that can happen?
 
What if I said I had to pay back a friend that lended me the money a long long time ago. How will they go after this?
New Contributor
whoisjohngalt7
Posts: 70
Registered: ‎02-09-2008

Re: Tax refund check before or after BK???

if you do that, i would get that in writing, a receipt if you will, showing at least you are making an effort to pay your debts.

i guess with all things, a show of good faith is in order.

you can pose the same question to your lawyer. he'll advise you on it.

write out all your questions before meeting with him. everything bothering you, everything that happened.
Established Contributor
granny031350
Posts: 951
Registered: ‎12-04-2007

Re: Tax refund check before or after BK???

spend your refund on none luxury items.  Don't pay off any of the credit cards etc.  Pay ahead on your mortgage, your car, stock up on food items that will last.  Keep all receipts of how it was spent. 
New Contributor
LTrain823
Posts: 82
Registered: ‎04-25-2007

Re: Tax refund check before or after BK???

Granny!!! you are the best!!! This is the best news i have heard about my refund check. Although i know nothing is certain when it comes to BK but are you pretty confident that i can do this? And would mean that i would have to wait until i get the check first before i file bk? Can i file and tell the trustee not to take it because i am planning on putting it towards the mortgage?
Established Contributor
granny031350
Posts: 951
Registered: ‎12-04-2007

Re: Tax refund check before or after BK???

Keep your receipts.  If you are filing a chapter 13, you need to "prepare" for it.  Stock up, like I said.  Make sure your car can/will last 5 years.  If it needs work, use that tax refund to get it fixed.  If your condo needs any repairs, get those done prior to filing.  Also, as to keeping 1 credit card, I doubt that Cap 1 would allow that but you can always call and ask them, once you file. 
Senior Contributor
fishbjc
Posts: 3,155
Registered: ‎11-30-2007

Re: Tax refund check before or after BK???

[ Edited ]
Your best bet is to speak to an attorney. 


Message Edited by fishbjc on 02-28-2008 07:52 PM

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