Tax refund question

[Anonymous]

I filed for bankruptcy and it was discharged on Dec. 29.  When we were going over the paperwork, my lawyer exempted the amount of tax refund that I got last year.  I just got my taxes done and I am supposed to get $700 more.  I don't make a ton of money or have kids, so that's a significant increase for me.  What happens to that extra money?  Any chance I get it?  My case was no asset, so it is not as if creditors are being paid.  Wishful thinking on my part I guess.

[StartingOver10]

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@Anonymous wrote:

I filed for bankruptcy and it was discharged on Dec. 29.  When we were going over the paperwork, my lawyer exempted the amount of tax refund that I got last year.  I just got my taxes done and I am supposed to get $700 more.  I don't make a ton of money or have kids, so that's a significant increase for me.  What happens to that extra money?  Any chance I get it?  My case was no asset, so it is not as if creditors are being paid.  Wishful thinking on my part I guess.

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Ask your attorney what happens to the non-exempted amount.

Remember, the trustee (who represents the creditors) gets a commission on every dollar they can get for the Bk estate. So even if the trustee gets all the additional funds over and above the exempted amount, the trustee will want it for the additional income. It's possible the trustee may say they don't want your $700, but you would need to speak to your attorney to make sure that you are following protocol for this particular tax refund.  

[redneck18]

I would like someone to correct me if I'm even a little wrong here, but my understanding is once the BK is discharged it is final. This would be the same if you got a raise or a higher paying job after the fact. When you file all that matters is what you have at that time or what is known to become available as a result of something that occurred before or during the process.

[Guyatthebeach]

That's not totally true with taxes. It varies state to state.  

[StartingOver10]

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@redneck18 wrote:
I would like someone to correct me if I'm even a little wrong here, but my understanding is once the BK is discharged it is final. This would be the same if you got a raise or a higher paying job after the fact. When you file all that matters is what you have at that time or what is known to become available as a result of something that occurred before or during the process.

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Income taxes are filed in arrears. The OP just got his discharge Dec 29 so he will be filing for his taxes for 2016 which is when he filed Bk. So if only a portion of his refund is exempted, then that would be the portion he could keep. He needs to clarify with his attorney where the balance of the refund is to be sent.  IME the trustee isn't going to look away and forget about it.