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Tax return

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Shooting-For-800
Senior Contributor

Re: Tax return

11/12ths of you tax return should have been listed in your ASSETS when you filed.

It is the same as money in the bank.

I would not spend any of it.  It will go to your creditors unless it was already accounted for and exempted by the trustee.

It is liquid and will probably be taken by the trustee.

 

Chapter 7 is liquidation of assets after all....

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Message 11 of 15
despritfreya
Frequent Contributor

Re: Tax return


@Anonymous wrote:
I have filed, I submitted the paperwork and everything. no case has been created yet Bc of the holidays they are far behind.

Again, you are stating completely opposite things.  Maybe there is a language issue.

 

If you have actually filed bankruptcy you have a case number.  If, as you say "no case has been created yet", it sounds like you have given information to your attorney but the attorney has failed to create the necessary forms for you to sign so that you can file bankruptcy. 

 

Quite frankly, your attorney being "far behind" because of the Holidays is concerning.  It does not take two + months to draft bankruptcy schedules even in the most complex of cases, if the client has supplied all necessary information for the drafting of those schedules.   I suppose a bankruptcy mill operation could fall behind but that, to me, is an issue of quantity, not quality.

 

In cases where my clients have not yet filed bankruptcy I simply tell them that they get to keep the refunds so long as the refunds are received, cashed and spent before the case is filed.  I warn them that they must keep track of how the funds are spent and the funds need to be spent on necessary items.  

 

As originally stated, you need to discuss how to spend the funds (assuming you are not in bankruptcy) with your attorney.  If you are in bankruptcy those funds belong to the Trustee subject to an allowed exemption.  If you are in bankruptcy before you receive the refunds you need to check with your attorney as to what you can and cannot do.  Please get the attorney to put the instructions in writing so that there are no issues down the road.

 

Des.

Message 12 of 15
wa3more
Established Contributor

Re: Tax return

Desprit's advice is accurate.....

Message 13 of 15
Anonymous
Not applicable

Re: Tax return

I’m not sure then, I went to my attorney filled out paperwork in November He pulled my credit and everything was submitted to the trustee. He said that the trustee hasn’t set up my case yet and should have it done soon.

Edit: okay I got it in written Email form to go ahead and spend the money.
Message 14 of 15
despritfreya
Frequent Contributor

Re: Tax return


@Anonymous wrote:
Edit: okay I got it in written Email form to go ahead and spend the money.

Excellent.  Now if something goes wrong (which it won't) you have someone to complain to.

 

Des.

Message 15 of 15
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