topic Re: Will I lose my tax return? in Bankruptcy

Will I lose my tax return?

icyhot — Mon, 29 Jan 2018 01:33:33 GMT

Talked to my lawyer and I am due to file around the week of 2/12. I filed my taxes and am due a refund of 7.3K. I am filing a chapter 7 and my income for last year was well under the median. Will they take my refund even tho it’s such a negligible amount compared to what I owe? I read a few places to spend it on necessities like bills, so that may be what I do. However I did want it to sit and save interest for emergencies.

Re: Will I lose my tax return?

bentleyboii — Mon, 29 Jan 2018 14:15:57 GMT

I would have a discussion with your lawyer, these types of qestions are best suited for them (Even though this is a great community) Im sure your paying him plenty for these anwsers

Re: Will I lose my tax return?

Anonymous — Tue, 30 Jan 2018 00:30:31 GMT

wrote:
Talked to my lawyer and I am due to file around the week of 2/12. I filed my taxes and am due a refund of 7.3K. I am filing a chapter 7 and my income for last year was well under the median. Will they take my refund even tho it’s such a negligible amount compared to what I owe? I read a few places to spend it on necessities like bills, so that may be what I do. However I did want it to sit and save interest for emergencies.

I doubt it. I filed in November 2017 and had my 341 in December 2017. I filed my income tax return and also am due a refund similar to yours. Today the trustee filed a report of no distribution. So my tax return was not asked for. But i did list it as an asset on the bankruptcy schedules.

Re: Will I lose my tax return?

Anonymous — Tue, 30 Jan 2018 14:43:44 GMT

We did. We had 5.6k refund when we filed we had to write a check for 3000.00 of it to the chapter 7 trustee.

We filed 7/2012 discharged 12/2012 took the refund (most of it) 2/15/2013

Re: Will I lose my tax return?

despritfreya — Tue, 30 Jan 2018 15:40:47 GMT

wrote: I doubt it. I filed in November 2017 and had my 341 in December 2017. I filed my income tax return and also am due a refund similar to yours. Today the trustee filed a report of no distribution. So my tax return was not asked for. But i did list it as an asset on the bankruptcy schedules.

Did you claim an exemption? If not, once your Trustee finds out, he/she may very well withdraw the report of no distribution. Unless there is an exemption, he/she is entitled to 11/12s of the refund. It will be up to him/her to decide if withdrawing the report is worth it.

OP,

Your Trustee is most likely going to take the 2017 refund because it is "large" (anything over $1000 is typically considered "large"). He/she has the right to take it unless you can claim an allowed exemption. You need to discuss this with your attorney.

Edt to add: Of course, if you receive, cash and properly spend (keeping receipts) the refund before you file, there will be nothing for the Trustee to take. Talk to your attorney.

Des.

Re: Will I lose my tax return?

Anonymous — Wed, 31 Jan 2018 02:45:40 GMT

I just checked my petition and yes we did claim it as an exemption. I guess thats why.