I have my chapter 7 bankruptcy discharged a month ago and received my tax refund (e-file).

Asked over 1 year ago - Seattle, WA

Do I have to let my court know about it? my debt was mainly credit card.

Attorney answers (4)

  1. Walter C Oney Jr

    Contributor Level 17

    10

    Lawyers agree

    Answered . The court doesn't care, but your trustee may. Your prospective refund should have been disclosed as an asset on your Schedule B and exempted on Schedule C. The trustee probably asked about it at the 341 meeting, too. Tell your attorney, who will tell the trustee. Don't spend it until your attorney tells you it's okay.

  2. Frank John Kokoszka

    Contributor Level 10

    7

    Lawyers agree

    Answered . I agree with the attorney answers already provided. I would like to emphasis that you stated that you received your "discharge a month ago"; however you did not state whether or not your case was closed. Some debtors believe that the discharge order means that the case is closed- however, they are two separate events.

  3. Paula Brown Sinclair

    Contributor Level 20

    3

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . You may be under an "Income Tax Turnover Order" (which is entered in every case in the bankruptcy court where I practice) and you may have received verbal instructions from the Trustee at your 341 hearing. Depending upon when your bankruptcy petition as filed and whether any part of your refund can be exempted, the Trustee has a valid claim to some or all of that refund. Further, if your case is a no-asset case otherwise the Trustee will only enforce surrender if the estate's share is large enough to justify administration. Ideally, you are represented by counsel who will be available to advise more precisely on this issue.

    Best wishes for an outcome you can accept, and please remember to designate a best answer.

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.
  4. Diane L Gruber

    Pro

    Contributor Level 18

    3

    Lawyers agree

    Answered . Tax refund should have been listed on Sch.B as an asset. You need to ask your BK attorney. Under most circumstances, if the refund is high enough, you will have to turn it over to the trustee. Before you spend it, you need to find out. Your discharge can and will be cancelled due to this.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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