Basically need second opinion. Filed bankruptcy 10/9/14. Hearing was 12/8/14. Approximate discharge date 2/6/15. Attorney & tax person said I will still get tax refund. But I'm worried about it & still think there's a chance I won't get it. All my bankruptcy debt was payday loans and medical bills. Will I still get federal tax refund? Should I wait until after 2/6/15 to file or can I file sooner? Thanks.
I assumed you filed a Chapter 7 since your anticipated discharge date is so close to your filing date. If so, whether or not you get keep the anticipated tax refund depends your exemptions covered the tax refund. And since you filed on 10-9-14, the estate may be only entitled to a pro rata share if the refund had not been exempted. If the refund has been exempted, and the trustee hasn't been objected to the exemption by a certain date, then the tax refund would be protected from the Chapter 7 trustee.
When you file your taxes has no bearing on whether the Chapter 7 trustee can take the tax refund; the date of relevance is your bankruptcy filing date, your filed exemptions and whether the trustee objected to them by a date certain.
Now if you owe backtaxes to the government prior the bankruptcy, the government may just offset the tax refund against what you owed them. More information would be needed however.
The big issue is the amount of refund you expect and the exemptions in your state.
Did you you list the refund a property on schedule B? Did the trustee inquire about the refund?
You state your only debt was payday loans and medical bills, and if this is true then there would be no chance the refund would be seized by IRS or a Federal student loan, which would be the only reasons you would not receive the refund.
Attorney Zhou states it exactly like it is. You can file now as no reason to delay. Either the refund is exempt or it is not. If in fact it is HIGHER than you listed (if not listed file amendment NOW and exempt it as much as possibly or in full) then you can file an amendment. But a small di minimus change in amount wont require really an amendment. Good luck.
It has been 1 month since your meeting of creditors. The trustee should have prepared and mailed to you a letter stating that he/she is seeking to receive a copy of your 2014 income tax return and any possible refunds. Check with your attorney. The trustee also can make a motion to the court for turnover as well, so check with your attorney. If you file now, you must request the tax refund by paper trail, and speak with your attorney about turnover. Also, your Schedule C is important to examine as it relates to the exemptions your attorney has or has not used to protect all or a portion of your tax refund.
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