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Bankruptcy Order to Turn Over Property Then Report of No Distribution?

Tampa, FL |

I received an order to turnover to the trustee a copy of my tax return and the estate's portion. I sent the trustee a copy of my 1040 but not return (as that is pending from the IRS). A few days later the trustee filed this:

...report that I have neither received any property nor paid any money on account of this estate; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law. Pursuant to Fed R Bank P 5009, I hereby certify that the estate of the above-named debtor(s) has been fully administered. I request that I be discharged from any further duties as trustee.

Do I send my refund?

Ran out of room, but do I need to still send the trustee the estate's portion of my return (it would be at most about $500, if that, once I receive it).

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Attorney answers 4

Posted

Your question is confusing. The "return" is the report of income you file with the IRS. The "refund" is the money the IRS sends you back. It's clear that the trustee wanted your return. It's not clear whether he asked for your refund. Your attorney should contact the trustee to see what's up, given that the trustee has already filed a no-asset report.

Asker

Posted

the trustee wanted a copy of my return, she did not know if I had a refund or not and how much at the time, she asked for the estate's portion of my refund. When I provided her with my return, as I am still awaiting my refund, and asked her how she would like to proceed (as some of my refund is exempt), she did not respond to me and simply filed the report of no distribution instead.

Walter C Oney Jr

Walter C Oney Jr

Posted

So call and ask what the trustee wants you to do.

Posted

Contact the Trustee to see if s/he wants your refund or not. Depending on the size of the refund, it may be eligible for an exemption or be too small to administer, and you could keep it. The report you received was merely a snapshot in time based on the information available to the Trustee. It is not a determination that you are or are not able to retain your tax refund.

Hope this perspective helps!

Posted

This is a Report of No Distrubution. This is good news. It means the trustee has concluded that he or she is not going to collect any assets from you. I assume the trustee saw that the amount of refund would be small. You can confirm with the trustee's office if you want and if you do not have an attorney to ask, and I have seen perhaps once or twice a trustee withdraw a Report of Do Distribution, but this document means you do not have to turnover the refund.

The questions and answers posted on AVVO are for general information and should not be treated as legal advice or establishing an attorney-client relationship.

Posted

You are safe. The trustee has determined that the amount of the refund is not worth administering as it will not bring a meaningful benefit to the estate. The Trustee is abandoning his/her interest in the refund.

I hope you found this response to be of assistance. This response shall not be considered the rendering of legal advise but instead a general response to a general question. While Avvo is a wonderful resource, nothing can be a substitute for an in-depth consultation with an attorney in the jurisdiction in which the law is to be applied. This response shall not be deemed to create an attorney-client relationship, nor shall it create an obligation on the part of the attorney to respond to further inquiry from the questioner.

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