Chapter 7 Bankruptcy

[voices101]

What is the name of your state? Florida

I recently was discharged from chapter 7 bankruptcy (January). I filed my income tax return at the end of January and several days ago received a call from my bankruptcy trustee requesting a copy of my tax returns. The trustee stated that I might be required to turn over a portion of my tax returns to pay my creditors. If all my debts were discharged why would I need to turn of a portion of my income tax? There are no debtors to pay if I received a discharge. My trustee stated that even though I received a discharge I still am required to pay debts. I still do not understand why I would be responsible for paying for debts that have been discharged by the courts. Can you please shed some light on this situation.

Thank you
Voices101

[Ladynred]

If all my debts were discharged why would I need to turn of a portion of my income tax?

Because you were entitled to receive that refund on the day you filed for bankruptcy, so the expected refund, all or in part, is considered part of your bankrutpcy estate and therefore the Trustee can take it and distrubute that money to the creditors you listed on your creditor matrix.

There are no debtors to pay if I received a discharge.

YOU are the debtor, and there ARE creditors to be paid - all those you listed on your bankruptcy schedules.

My trustee stated that even though I received a discharge I still am required to pay debts. I still do not understand why I would be responsible for paying for debts that have been discharged by the courts.

See my first answer, the Trustee can and will take some or all of your refund and give it to your creditors. It may not be much, but that's his/her job.

[bigun]

A tax refund is considered property of the bk estate. Follow instructions or, risk having your discharge revoked.