Tax refund - when an asset?

Hello, here I am again with a question. (South Carolina)

Are income tax refunds considered an asset if filing a Chptr 7 for 2002? I already received my refund the beginning of April.

Will it be better to file later in this year or will they still look at my 2002 tax refund as an asset, a lot of the money has already been spent on groceries, living expenses and summer clothes for my children. Nothing extravagant, just basic necessities.

Thanks in advance.

[Ladynred]

You would have to list the amount of cash you have, in bank accounts and on-hand, on your bankruptcy forms. If you no longer have the cash, they can't very well take it from you. If you'd filed BEFORE you got the refund, the Trustee might very likely have taken it.

I don't know if the Trustee would ask for any proof of what you did with the tax refund money. If he were to ask if you're expecting to get a refund, you may have to tell him/her that you've already gotten it but its been spent on necessities and not luxuries. I don't know how much they would scrutinize it, perhaps one of the other members would have some insight.

If the refund were received DURING the bankruptcy proceedings, the trustee might have been interested in it, depending on how much it was.

However, if you received it, spent it and then later filed a BK, then I doubt there would even be a question about it, let alone an interest in pursuing it.