Bankruptcy chapter 7 and tax refund

[Gerula 56]

What is the name of your state? WA
We filed chapter 7 bankruptcy in December and had the Creditors meeting already. Nothing was mentioned about the upcoming tax refund (we stated that we expect about $2000 for 2004).
If we get the discharge docs by April 15th, we file the tax return and the tax refund is higher, will the court take the it?

[ihatearizona]

You need to contact your Trustee to find out if they intend to take your refund. This is the only way to know for sure.

[Gerula 56]

Should I contact the Trustee myself or have my attorney contact him?
My attorney suggested that since nothing was mentioned about the tax refund we will be fine but I don't want to take any chances.

[ihatearizona]

I wouldn't take the chance. Contact the Trustee yourself if your attorney is unwilling to do so. Should you receive your refund, and spend it, then the Trustee asks for it and you don't have it, the Trustee could dismiss your BK.

[Gerula 56]

If the Trustee says that he will take the tax refund wouldn't I be better off by not listing all the deductions (home improvement) and amend my 2004 tax return in 2006?

[ihatearizona]

I wouldn't play games with the Trustee. I'm sure they're on to just about every trick there is to avoid having to turn over a tax refund. If you really want your discharge you have to play by their rules.

[Gerula 56]

I guess actually my question is: for how long after the bankruptcy is discharged is the Trustee looking into my financial statements?
From what I read so far it looks like after I get the discharge notice the Trustee can verify my fianacial dealings for 12 months. Is this true?

[minardx6]

Arizona....

My wife and I just filed and have our 341 meeting next week. I filed myself as we couldn't afford the attorney fees. It was very stressful.

Our biggest concern is - duh - whether or not we will get our income tax refund. I normally do our taxes myself (we usually have our refund by mid-February) electronically, but we are really concerned we'll lose the whole thing now. We probably will be getting back close to $4,000 (four kids, thank you EIC) and we REALLY need it.

Where do you live and is there anyway to find out if it depends on the Trustee. I am really nervous about this, especially because we are a no-asset case and shouldn't lose anything else.

HELP!!

[ihatearizona]

I filed in Phoenix. Our Trustee required us to sign a form at our 341 meeting detailing that the Trustee was entitled to our 2002 & 2003 tax refunds (we filed 6/04). We had to explain that our 2003 refund was used to save our home from foreclosure. No other questions were asked. It really depends on when you file. You'll have your answer at your 341 meeting most likely.

[ihatearizona]

Originally Posted by Gerula 56

I guess actually my question is: for how long after the bankruptcy is discharged is the Trustee looking into my financial statements?
From what I read so far it looks like after I get the discharge notice the Trustee can verify my fianacial dealings for 12 months. Is this true?

I don't think it's 12 months. I've read posts from 0 days to 6 months after discharge. I do believe that our Trustee asked us at our 341 if we expected any inheritance or windfall earnings to come in in the next 6 months. We answered no as we didn't expect any. Once again, I think it all really depends on your Trustee.

[Gerula 56]

So there is no law that states for how long the Trustee is...on your case?
We basically miscalculated our tax refund and stated an aproximate amount.
There is no debt that cannot be discharged and no tax refund issue was brought up at the 341 meeting.

[ihatearizona]

I'd still call the Trustee to find out for sure about your refund.

[Gerula 56]

We do not have any equity in our home so I'm wondering if we can use the $18000 exemption to offset the tax refund. I beleive it's called "homestead exemption" and I don't know if it's $18000 for joint bk or only $9000.

[Ladynred]

You need to ask your lawyer if you can use part of that homestead exemption for any other property if you don't have a homestead. Some states (like mine) allow you to use part of the homestead exemption for 'any property' if you don't have a homestead to claim. So you should ask your lawyer if WA allows this.

You are better off finding out NOW if they Trustee does or does not want your refund. There is a woman who posted here recently who's sister IGNORED the Trustee's order to turn over her tax refund. A YEAR later, the Trustee is revoking her discharge for failing to turn over the refund.

[Gerula 56]

WA state allows state and Federal exemptions.
So if I use the Federal that states "Unused portion of homestead to $9250 may be applied to any property" I should be OK.
I understand that I can use either or.

Thank you very much for all your replies!