How long after a chapter 7 discharge can a trustee take windfall money or tax returns or proceeds from property sales?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

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.
34 people found this useful

What do you have to do with your tax return money if filing chapter 7?

Answer . \nYou 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

How long does chapter 7 take to discharge?

Answer . Hello,\n. \nI 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

How much can trustee take of tax refund in chapter 7?

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

How long after a chapter 7 discharge can they take your tax return?

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 had you

If a mortgage is discharged in chapter 7 can they try and take the property?

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...especia

Will Chapter 7 Bankruptcy discharge state sales tax?

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! I

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 over

How long does it take for a trustee to refund your tax refund after filing chapter 7 bankruptcy?

The tax refund goes into the bankruptcy estate. If your chapter 7 filing did not exempt the refund, the money will be used to pay the trustee and to pay your debts pro rata. T