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How long after a chapter 7 discharge can a trustee take windfall money or tax returns or proceeds from property sales?
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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No they do not take your refund from my experience, but they do take the state refund. If they do take it, you can contact the trustee and ask for it back. I was told as long …as the payments were being made every pay period we were okay. Hope this helps
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.
Chapter 7 Roughly, it takes 5-6 months after filing of the petition to get a discharge if it is a no-asset case. If there are assets or questions about the value of assets, …it may take longer. More information: There is no court hearing in a no-asset case, and the discharge in Massachusetts is usually about 6 weeks after the 341 meeting/first meeting of creditors. The federal rule requires no-problem no-asset cases to be closed within 6 months of filing, after the filing of the certificate that the debtor(s) have taken the class in financial management. . A debtor is eligible to receive Discharge 60 days after Meeting of Creditors (also called the "341 hearing"). In most jurisdictions, it is my understanding that the issuance of the Discharge is pretty much automated, so it actually gets issued around 61 days after the hearing, and you get it in the mail around 64 days after the hearing. I know this is the case in Southern Indiana, but I don't know about other jurisdictions. However, there are certain things that can hold up a Discharge, such as if there are complications in the case, or if there is an asset the trustee wants to sell, etc. . I am a bankruptcy attorney in Kentucky. The discharge here gets issued on about the 61st day after your meeting of creditors in Kentucky, so long as there are no issues that arise that would prevent discharge. I believe that other states operate on pretty much the same time frame.
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.
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.
1 - 2 weeks It only takes 4 to 5 days if you have direct deposit.
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.
They have wide discretion to leave a case open as long as they feel necessary to determine whether fraud is being perpetrated or whether unexempt assets can be obtained.
Answer I think it depends on when the bankruptcy is discharged, but it would be discussed at your meeting with the creditors and the trustee. If it wasn't discussed…, then the refund is yours.
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 If the vehicle was not included as non-exempt property in the BK petition it is considered exempt from sale and seizure.
Answer Maybe. It depends upon the amount of time that has elapsed between the BK discharge and the receiving of the tax refund. Generally any refund …that can be seized by the trustee must be pro-rated.
If a final decree states that trustee is hereby discharged and any bond required is cancelled and that the chapter 7 case of the debtor is closed might they still ask for your tax refund?
They may not be able to as for your tax refund because they have freed you of all obligations. However, you need to read the paperwork and make sure there is no language t…hat gives the right to go after the money in the future.
How long after a Chapter 7 discharge does a creditor have to take back a car that you did not reaffirm?
There's no rule. It may not be worth it for the lender to repo or take the vehicle. To be safe, you may want to send the lender a letter, certified return receipt, givin…g a time, date and place to pick the vehicle up. If the lender does not, be sure to keep the letter and green card to prove the lender abandoned it. Then you will want to get the title. You may have to sue the lender for it.
Not really, unless there was some type of fraud on your part. Also, any assets you inherit within 6 months of filing BK ( even after you receive a BK discharge) would be requi…red to be turned over to the BK trustee.
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.