341 hearing & Income tax

[kiote69]

What is the name of your state? Missouri.
I've filed chp.7, I just received a letter from the Trustee saying I have to send them my refund when I get it. I can barely get by now, I needed that money for car work, bills etc. Just when I thought I might get caught up, this happens. Anyway I can keep my return? What will they do if I cash the check and use it for these things( bills, car work, etc)? I really was depending on this return, My atty. says I have $280.00 left on my "wildcard" so thats all I'll get of my $1300.00 return. PLEASE any info. will be greately appreciated.

[spoiler]

DO NOT CASH THAT CHECK! DO EXACTLY WHAT THE TRUSTEE IS ASKING YOU. If you use the money your bankruptcy will be dismissed! I know the money seems important, but isn't your bankruptcy more important???

[Ladynred]

Spoiler is right, do NOT cash that check. Now that the Trustee has asked for it, the refund is not yours any more. The expectation of the refund was/is part of the bankruptcy estate. Unless you can find a way to fit the whole $1300 into your exemptions, you'll have to settle for the amount that you CAN exempt.

There was a woman who posted here a few months ago who's sister had filed for bankruptcy. The Trustee told her she had to turn over her tax refund - she didn't do it. A year after her discharge, the Trustee had filed to REVOKE her discharge for failing to turn over the tax refund.

Believe me, its NOT worth it to defy the Trustee on this kind of thing.