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Tax refund

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

When I became unemployed we began the process of converting our chapter 13 to a chapter 7. When we recieved the final account information from our trustee an amount had been paid for state taxes which later was determined to not be owed, so the state may be refunding the money to us. Since it is after the date of filing for the conversion to chapter 7 can we keep this money or does it have to go back into the bankruptcy and be redistributed to other creditors?
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Senior Member
If you have not had your 341 meeting yet, you need to add this as asset to your petition. If you have had your 341 meeting, call the trustee and ask. If there were no challenges to your petition, you will likely be allowed to keep the money.


Junior Member
Thank you. I asked because I wanted to know. I appreciate your response. Our trustee has been discharged. I just wish our lawyer had been as upfront.

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