What would you like to do?
The answer to this question isn't cut and dry, since the trustee can reach quite far into the future to get an asset if they think the debtor had the asset during the bankruptcy case and failed to disclose it or accuratelt represent its value. But, assuming it is truly an unexpected windfall, I think 11 U.S.C. 541(a)(5) is the best place to look, which states "[The bankruptcy estate includes] [a]ny interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date- (A) by bequest, devise, or inheritance; (B) as a result of a property settlement agreement with the debtor's spouse, or of an interlocutory or final divorce decree; or (C) as a beneficiary of a life insurance policy or of a death benefit plan." So, for these types of windfalls, the trustee can reach 180 days (6 months) into the future. I am not aware of the trustee's ability to reach into the future for any other types of windfalls unless, as I said above, the trustee thinks the debtor knew about them during the case. I know of one case where the debtor listed his home's value as $100,000.00 and then sold it about a year and a half after the case was closed for around $250,000.00 and the trustee found out and reopened the case and filed an Adversary Proceeding against the guy for misrepresenting the value of the home during the case.
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If the trustee wants to dismiss your Chapter 7 for bad faith due to last minute excessive spending of a tax return how long until you can refile?
You can try refiling in 180 days. Unless there are extentuating circumstances.
How can you find out how much of your income tax the trustee will take after filing chapter 7 bankruptcy?
The answer to this question varies from jurisdiction to jurisdiction, but I would say it is wise to ask your attorney what the common practice is in the district in which you… filed. In Indiana, the trustees normally lets debtors know at the Meeting of Creditors (also called the 341 hearing) whether they want the refund check, and if so, how much. Different states let you keep different amounts of cash in bankruptcy, so the state in which you live may influence how much the trustee takes. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Answer You should wait until your refund is received and be sure to spend it on necessities or items that would be exempt anyway. Never file right before a …large refund is due, the trustee will take it and apply it to your debt. In some cases you might have to wait to file Chapter 7 for quite a few months in order to protect your refund. For instance, if you feel the pressure to file in the fall, but are expecting a refund after the new year that would be a span of up to four or five months. Is it worth it to wait? Some people can't take the creditors hounding them an extra few months. Those persons might be better off just giving up the refund to the trustee.
Answer Hello, I from education can not give you a direct answer, but from experience a discharge can take up to 3 months after the inital court date. …All paperwork will be filed, and any funds from the trustee will be distributed within this timeframe. Im not a legal advisor, so this information may vary from state to state. The information listed above was done in the state of Ohio.
Answer If the vehicle was not included as non-exempt property in the BK petition it is considered exempt from sale and seizure.
Why can a trustee take your income tax return if you are filing a chapter 7 bankruptcy which relieves you of your debt and does the trustee give the money to the creditors?
Answer The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
You have a chapter 7 discharged in 2006 now you are filing taxes for your return from 06 can they take it after you have been discharged?
Answer Probably not. They are likely all post petition (meaning after your filing date - they don't have to be before the discharge date) items anyway. …
Answer . This Q has been pushed around a lot here...and this is what I've pieced together:. It depends...a bit on which circuit court your in and how they feel...and expecia…lly how much is involved...(obviously large amounts are wanted for creditors...and it just seems unfair for you to not pay someone your debt, because you didn't have the money, because you had too much withheld or prepaid...when the amount withheld/prepaid is controllable and returned to you!). The other aspect is when you filed compared to when you made your money...If the overpaid tax is for a pre-petition filing period...most trustees want it...but if it really isn't then it's yours. So say it's a refund for the year and you filed BK in December.....well it was basically all withheld as part of the Jan-Dec period in your filing...and it part of the BK...but if you filed in say March...well not much of it is really from the covered BK period.. Sort of makes sense.
I believe the best way to look at this is: The money your being refunded is an overpayment made for earnings at some time. If those earnings were pre-petition, so ha…d you had the money it would have been part of the BK assets, then the refund should be. (The only reason the BK didn't have it as asset was because you over estimated a payment...you could have over estimated and had all you earnings withheld...that wouldn't mean you should get it all now and it properly shouldn't have been gone to your creditors from then).
Something doesn't add up...I'm not sure your providing all the facts, or misunderstand what happened. A bank/lender would know there isn't a mortgage loan anymore...especial…ly since, as a secured creditor, if the mortgage was included in the BK, they would have taken the house which was the security for the loan (you wouldn't own it anymore)...No, the court doesn't just discharge the debt and give you the property...(if that did happen it would indicate maybe you mis-represented something in you BK filing...which can be fraudulent). In the BK, your security for the debts is given up, and used to pay the debts. You do not escape the debts and keep the property. If it is an unsecured debt, ALL YOUR PROPERTY/VALUE, (except for those few things that your allowed to keep, like furniture), are taken to pay those debts. The secured creditors have first call on the value received from the secured items....the others basically get their share of the rest. Most likely you ARE able to keep your property after the mortgage has been discharged, provided you continue to make your payments
Absolutely not. Even in the BKs with the highest powered of lawyers...and Corporations....the last things done before filing BK is pay the sales and withholding taxes! In …most all states or taxing jurisdictions, (with California being one large notable exception), these are not taxes on "you", but money the business collects from others (customers or employees) on behalf of the State. They are trust funds....they not only won't ever be discharged....they carry direct, pierce any corporate shield, to the officers and involved parties, responsibility. Better take care of them one way or another ASAP. In the few places they may be legally considered the responsibility of the vendor, they may be discharged in the BK, (as situational as anything else), and would be a priorty claim and even allowed an extended bar date for filing a proof of claim.
Sure. Can you take the money and not pay it back as you promised from a business whose owner and employees have kids?
Is there a time limit from the filing of your petition in a chapter 7 and when a trustee can take the tax return you receive the following year?
As long as the case is open..he has a right to assets. Now, there seems to be some leeway on how tax refunds are handled...but it should be relevant to when the tax… was overpaid. So, say you made the same salary through the year, and filed BK on March 31. If at the end of the year (return filing 4/15 of following year) you have $1000 of refund, only 1 quarter (the 1/1 to 3/31 period) is prepetition overpaid and really available for creditors (logically, had you not put it on deposit at the IRS, it would have been used to pay the debts), and therefore $750 should be kept by you and $250 held by the BK. Obviously, uneven earnings through the year and such can make the calculation more intricate...but that should be the direction you want to go.
Typically 5 or 6 months from filing date to the discharge date, providing no amendments to the schedules are required. Fraudulent or questionable entries on the schedules can …cause the process to be drawn out and the bankruptcy ultimately dismissed however.
If the property was claimed as exempt the trustee has 60 days to either exempt or reject the contract. If nothing is done then the contract is automatically rejected and the t…enant is considered a holdover tenant. If you exempted the property the property reinvests in the debtors name and thus the rents should follow as the debtor is the only one with standing to collect the rents. That is not to say the trustee will not try hard to stand in your way though.
No, unless a person dies within 180 days of the debtor filing for BK and the debtor receives an inheritance from the decedent's estate/probate.
It depends upon the complexity of the individual case, but usually, the period of time from filing until receipt of discharge is 90 to 120 days.