taxes and bankruptcy

[siebs13]

What is the name of your state? indiana
how can i avoid sending all of my fed. tax return to the trustie. she is going to take up to 80% and i worked my butt off for this money and feel i filed bankruptcy to discharge my debt not to have to pay 80% of my return. any suggestions are app.

 

[bigun]

If the trustee has ordered you to give up the return then there's nothing you can do if you want the bk discharged smoothly. What does your lawyer suggest? How much is the return? How much is the discharged debts?

 

[Ladynred]

Chapter 7 or 13 ??

 

[MidnightSwinga]

Make sure you adjust your withholding for the future too if you filed a cH13

 

[siebs13]

My lawyer sucks he got his money and is doing as little as possible. Every time i ask him if i can do this or that to save some of my money he just says to give the check to the trustee. My return is about 9700 and i just hate the fact that 80% might be taken. My discharge is about 25000 i just dont see the justice if i paid my lawyer 1200 and have to pay another 80% . another question i have is, i use turbo tax and towards the end of it , it ask you if you want to forward all or some of your return towards next years return incase of a payment due. Now two things assumming i will also get a return for my 2003 taxes will i get the monies i forwarded and the return or what might happen to the money i choose to forward. I'll explain more if you don't understand, just let me know. and the second part is if i choose to forward the money onto my 2003 return and i still send a small check to the trustee then will she figure okay that is what it is and take the 80% and be done or can she find out that i put money towards 2003 and ask for that return also

 

[bigun]

I'm assuming this is a chapter 7. $9700 is nearly 40% of the unsecured debt that you discharged. You're lucky she didn't dismiss the bk all together. SHe could have demanded it all. I assume she knows how much you're getting back. Your lawyer is giving good advice. Don't lie to the trustee or try and hide the refund into future years. If you want the bk discharged you'll need to play by her rules.

 

[srhng]

Is this a 13 or a 7. If it is a 13, doesnt the refund go toward your payback plan?

If it is a 7. Sorry but when you filed whatever money owed to you was your estates and that means it is the trustees to do with what he sees fit.

 

[siebs13]

She doesn't know what i will get this yr. but does have last yrs. and last yr. i was able to claim alot of stock losses and adoption expenses. I do want to play by the rules but it is just the point. You said it yourself it is nearly 40% of my discharge, and now i am going to screw up my credit to discharge 12000 dollars. It doesn't seem worth it. But the other bad part is if i dismiss the bk myself then all my creditors will be breathing down my neck with late charges, overlimit charges ect. I've already got more advice from this forum then from my lawyer. Yes to all it is a chapter 7

 

[srhng]

Sorry to hear that the windfall (good tax deductions) are coming to you the same year that you filed. It doesnt seem worth it to only be in for 12k (after the tax refund) and file BK.

If you look on the bright side. It is a fresh start and if you were in the position I was in. (late and overlimits). The punitive rates were higher than the post BK rates I am getting in the mail now.

Sure I have problems, but barely surviving and having no debt is much better than having the debt.

The year I filed I sold stock and 401k and had much capital gains. That made a no-refund situation on my taxes. Trustee seemed relieved I was getting no refund. I guess thats a pain in the ass for him to figure. Imagine dividing a meager refund among 85K worth of creditors.

I am not sure I would mess with my taxes to push the refund into future years taxes. It may work. But the trustee may see that as dishonest and give you problems.

Any senior members have any suggestions?

Good luck