WARNING TO ALL FILERS!!! Please remember this if filing late in the year

[Anonymous]

If you're filing late in the year, please remember that next year's tax refund, prorated,  is the property of the trustee. The trustee can reopen the case and seize his/her share of the refund you will get next year. Yes, even after the case was discharged. You'll have to exempt them or find other ways to limit seizure. My attorney didn't tell me until later, but it didn't matter. We had to file September of this year.  Plus, we exhausted our personal property limits and the refund won't be great anyway. If I had a big refund check coming next year, I would use a Schedule C to pay self-employment tax to fund my Social Security retirement.   It's easy to pick up odd jobs.       

[FireMedic1]

Each case is different. I take it you file a Chapter 13? I had all my back taxes DC'ed Nov of 2015. Got my refund after 14 yrs of not geting it the next year. But I was a Chapter 7,

[Anonymous]

I don't think this applies to Ch 7, does it?  The OP should clarify.

[Anonymous]

It applies to Chapter 7. In Florida, for example (and where I filed), you get a personal property exemption of $1000 per person. 

Any tax refund you get next year is the property of the trustee. Why? Because a tax refund is a cash asset. You earned that cash the year you filed. 

Since I filed mid-September, the trustee gets all of the "cash asset" I had withheld from January 1 to mid-September.  My attorney said that sometimes the trustee will not bother with anything less than a $2000 refund, but there have been trustees that have seized $300 checks. The trustee can reopen a discharged case, seize the cash asset, and send me back my portion (mid-Spetember to December).  

[Anonymous]

I spoke with my attorney's office and they said that if the trustee wanted my 2019 tax year refund (filed for next year), it would have been noted in his letter discharging my bankruptcy.  Was it noted in yours?

[Anonymous]

I just had the 341 yesterday. My attorney said that this trustee in particular is eager to get all refunds. He gets to keep a 25% cut for himself. I just want folks to know that the trustee owns any non-exempt part of that refund, even after the case is discharged.

[cammielewis820]

yes, and from my understanding at the 341 meeting, EIC and child tax credits are exempt as well. 

[Anonymous]

My taxes weren't brought up at my meeting. I'm in Florida and filed Chapter 7.

[pizza1]

I believe this is a case by case basis, or trustee by trustee basis. I was a BK7, and received my refund.

[FireMedic1]

I had all my back taxes DC'ed at the Middle Court in Orlando. It wasnt a small amount after 14 yrs of penalties and interest. My trustee said not 1 word about my next refund. Filed 8/15, MOC 9/15, DC'ed 11/15. Filed my 2016 taxes as usual and got a full refund. Its a case by case basis as @pizza1 said. What you went thru others wont have to or may have to. No case in BK matches, just like credit scores on here dont either.