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Tax Refund after Bankruptcy Discharge!

Hi I filed for Bankruptcy last October '09 and and had my 341 meeting last Dec '09. I already received my Discharged last February '10 and i received a letter from my trustee last March 9, 2010 stating that they need to have a copy of my tax refund and they want my refund. I filed for my tax return last February 2, and received my refund last Feb 23, i spent half of it already...........Will they still take my $935.00 refund....Please i need advice....Thanks

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

The tax refund, that you get, can be used to pay off your creditors while you file bankruptcy. Thus, you will have to send your tax refunds to the trustee. As you have spent some of your refund money, you should inform your trustee about the same.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Why would the Trustee take a tax refund after a Bankruptcy has been discharged and all debts have been paid off in full?

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Bear,

The trustee can take away your tax refunds to pay off your creditors. However, as your debts have been discharged, the trustee should not take your tax refunds. You will have to speak to your bankruptcy attorney and trustee in this regard and clarify the whole issue.

Take care.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband and I filed for Bankruptcy on October 29, 2009, in California. We had our meeting with the creditors in December 3, 2009 and our bankruptcy was discharged on February 8, 2010. When we filed our attorney exempt $1000 for upcoming tax returns. We just filed our taxes today, April 5, 2010 and are getting a refund of $2100. Since we already received our discharge do you think they will still take any $ we receive over the $1000 that was exempt?

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jnicolle,

As your bankruptcy has already been discharged, I don't think the trustee will be able to take your tax refunds in order to pay off your creditors. However, to be on the safer side, I would suggest you to have a word with your bankruptcy attorney in this regard.

Take care.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I live in Terre haute indiana filed bankruptcy last feb....was discharged in june and the trustee is stating i have to send in copies of my fe3d and st returns.....will they take all my return....they have already kept an inheritence from my grandmother.....i am also in monthly food stamps....i am worse off since filing and lost more

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi dee!

Welcome to forums!

The tax refunds that you will receive can be taken away by the bankruptcy trustee in order to pay off your debts to the creditors.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I filed for bankruptcy in dec'10 I have a meeting w/my creditors this wed feb 2nd '11. I filed my taxes electronically w/turbo tax and it says it was accepted by the Irs. Do you think they will send me the money or will they send it to the trustee?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kim,

They will send you the refunds but you need to submit it to the trustee so that he can use it to pay off your creditors.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i received a discharge on feb 8th and im getting 5639.00 back in taxes will they take it

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi heatherhjc,

If you've already received the bankruptcy discharge, then the trustee may not come after you to take away your tax refunds.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I filed bankrupcty in 2010 and mycase was closed & discharged 1/25/2011. If I get a refund does it go to the trustee

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi kiten,

As your case has been discharged by the court, I don't think the tax refund will go to the bankruptcy trustee.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just found out from my lawyer that I have to turn my refund over to the trustee this year and possible next year also. My case was closed and discharged. Why does the trustee get my refund, being broke I sure could use that refund.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

Well... as far as I know, if your case is discharged, then you won't have to give your tax refunds to the trustee.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We were discharged in Sep 2011 and Jan 2012 got a letter from trustee to turn over prepared taxes and any refund by Mar 2012. Waiting for atty to reply to an email, but it appears that based on the date you file, the trustee can get the refund w/in 6 months of the discharge. So, if you file in April, expect a refund of 1k, the trustee can take 1/3 of the refund, since Jan-Apr is 1/3 of the year.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello, I live in AZ, & I filed Chapter 7 in October 2011 without knowledge or consent of my husband. I only filed on my debts & included tax debt years 98 & 99 which I had permission from the IRS to do. I had 341 meeting in Dec. 2011. I only began working Aug 2011 . When I finally told him of the BK & that our return had to go to the trustee... he was livid! He filed a joint return as he feels that it is all his as he works & supports the family. I only net $200 per month. The return is to go into his account which I have never had access to! What do I do? My Trustee won't respond to my plea for help, & I did not use a Attorney I filed all by myself. I don;t want my BK to get thrown out for not sending return to the Trustee! My BK was Discharged Mar. 2012 & he filed the return about a week after the D/C. He filed electronically & I truly had no knowledge of this until I told him last week I had bad news for him about our taxes.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi O2BEME,

You should contact a bankruptcy attorney and take his opinion in this matter. Nevertheless, as you've filed bankruptcy on your own, you might find difficulty in resolving this issue.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am a single female and i recvd my discharge for bankruptcy in may 2012 now its tax time will i get a refund?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi nan,

The Bankruptcy Code requires a debtor to file an individual tax return, or request an extension. In addition, the bankruptcy trustee is required to file an estate tax return, form 1041, for the bankruptcy estate. The refund is an asset like any other asset and it may go to the trustee.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If John Doe got his chapter 7 discharged 7/01/12 and received a large check from someone(or windfall, or inheritance) on 2/01/12, is there any way a trustee can find out about it? I understand that his 180 day rule has expired, HOWEVER, is there any way a trustee can see a large deposit, say 50k into an account? Is this stuff monitored or reported, and HOW?????

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi klicker,

The windfall or inheritance won't be reported to your credit report. However, your bank account will have the details of the money transfer. But I don't think you should worry about it as 180 days has already passed.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Our Az bankruptcy was filed in Sept of 2011 and discharged in Jan of 2012 by the Bankruptcy Court. We had to send our trustee our refunds, do we need to send our refunds this year? Our case is still open with him and we can't get an answer yet, so I'll see if I can get it this way!

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi buznana,

If your bankruptcy filing is still open, then you may have to pay your tax refunds to the bankruptcy trustee. It will be better if you could meet the trustee in person and clarify the matter.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

HI,
My soon to be ex wife filed for bankruptcy and was discharged for $75,000 on Dec 22, 2011. She then filed her taxes and received a $19,000 return. We were together until Nov 2011.

Is the above legal, and if it is, can I sue her for half of the refund? She claimed everything on her taxes and left me with nothing. My new accountant thinks that I should consult a tax attorney. Any thoughts or suggestions?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,my 341 meeting was oct 2012 and my case been discharged and I file my taxs this yr 2013 can I keep my tax refund if I get it this march2013 or do I give it to the trustee.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Well, I don't know whether or not you will be able to sue her for the tax refunds, but there are high chances that the bankruptcy court can. There is nothing wrong in consulting a tax attorney in this regard.

Hi Roxie,

You may have to give the tax refund to the trustee. Nevertheless, you should contact the trustee and take his opinion in this regard.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi i filed ch.7 back in 2010 and did not turned in my tax refund to the trustee and now the trustee turned my case to her attorney to revoked bankruptcy. i understand why they are revoking my bankruptcy but now they want me to turn in my refund info for 2010 even though it was spent on moving, do you know why they need my tax info anyway?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi landon,

Normally, at the time of bankruptcy, the trustee will ask for the tax refunds so that it will help him in paying off your creditors. Nevertheless, as your trustee is asking for the refunds now, you should get in touch with the trustee and try to clarify the matter.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I filed for chapter 7 on 4/15/12 and was discharged 8/26/12 and now they want to take my tax refund. I have talk to different tax attorneys and I get different answers.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi survivalist!

Welcome to the forums!

The answer may vary as per your state laws. You may have to pass over the refund to the trustee unless your attorney can exempt it in the assets exemptions. If you do not do so now, the trustee can request that the discharge be revoked.

Feel free to ask if you've further queries.

Sussane

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