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Bankruptcy from 2016 and tax return spent, now motion to compel in 2018

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C6927

Junior Member
What is the name of your state (only U.S. law)? Missouri

My fiancee filed a bankruptcy in Nov 2016. We were told they may take our 2017 tax return. We held onto the tax return for 6 months and never heard anything. We put it in a completely separate account. We were also in a court case involving our home (which was in his mother's land). She won the case and we had to literally move our home and buy land to put the home on. We used that money to save our home. There was no spending on luxury items. Most of the return was from Earned Incime credit.

We received a motion to compel our 2016 taxes today. We've spent our 2018 taxes already. We paid $4000 on our mortgage and the rest on bills only. Again, no luxury items.

What is going to happen? We did not expect it would take this long and now the money is already spent. We have 3 children and are very scared.

Please advise.
 


Zigner

Senior Member, Non-Attorney
He may wish to consult with a local bankruptcy attorney to figure out how to unravel this mess that you (plural) have caused.
 
My fiancee filed a bankruptcy in Nov 2016. (He was) told (that the Trustee may demand the turnover of the 2016 refund. My Fiancee) held onto the tax (refund) for 6 months and never heard anything. . . (My fiancee has now) received a motion to compel (turnover of the) 2016 tax (refund). . . What is going to happen? (My fiancee) did not expect it would take this long and now the money is already spent. Please advise.
Your fiancee figures out a way to pay the Trustee the amount of the refund that he should have turned over back in 2017 when he received it. It wasn't his to spend.

If he does not have the funds, he offers to pay it to the trustee over time, in installments, say over a period of 6 to 12 months.

Des.
 

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