Can the trustee take the refund that is coming? 11 Answers as of February 29, 2016

We filed 4/30/2015. It was discharged 08/3/15. I have filed taxes this month for 2015.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Ronald K. Nims LLC | Ronald K. Nims
In theory, the trustee could have a claim to a part of the refund but since you filed back in April, it's unlikely the trustee would pursue it.
Answer Applies to: Ohio
Replied: 2/29/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Unless you claimed the tax refund as exempt, if your case is open, a Bankruptcy trustee can take up to 1/3 of your 2015 tax refund, if your Chapter 7 case has remained open.
Answer Applies to: Nevada
Replied: 2/29/2016
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Generally, once the case is over the trustee is deemed to have 'abandoned' any property left to the debtor. There are a few trustees who take a hard line on income tax refunds, and demand a pro rata share of the refund. (That is, if you filed say, on day 200 of the year 2015, the trustee might demand 200/365 of the refund.) Again, not all trustees follow that policy. Check with your bankruptcy lawyer as to the practice in your district. Good Luck.
Answer Applies to: Wisconsin
Replied: 2/29/2016
R. Steven Chambers PLLC | R. Steven Chambers PLLC
The trustee is entitled to a pro-rata share of your refund based on when you file. Since you filed on April 30 (1/3 of the way through the year) the trustee is entitled to 1/3 of your refund. Whether he will take it or not is another question. Often when you file early in the year as you did the trustee doesn't bother with the refund. Did he give you a directive to send him a copy of your 2015 return? If he did, follow the directive and wait to hear from him. If he didn't direct you to send a copy of your return, check with your attorney but the likelihood is he won't ask for it.
Answer Applies to: Utah
Replied: 2/29/2016
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
If you listed your tax refund as an asset and exempted it then the Trustee won't take it. If you failed to list it then the Trustee is entitled to one third of your refund based on what was accrued at the date of filing. This is one of many reasons to hire a knowledgeable local bankruptcy attorney before you file.
Answer Applies to: California
Replied: 2/29/2016
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If the case is closed, no. It would be an asset of the case if you were owed the return when you filed, however if the trustee did not send you a notice saying your case was an "asset" case - you have nothing to worry about.
    Answer Applies to: California
    Replied: 2/29/2016
    Freeman Law Group, LLC
    Freeman Law Group, LLC | Derek Freeman
    The answer to this depends on several things. If the trustee submitted a statement of no distribution in your case, s/he effectively abandoned any interest in your 2015 tax refund. If there is distribution in your case, there is a possibility that the trustee could request that you turnover a portion of your 2015 refund. To do so, s/he will have to either get you to sign a stipulation agreeing to do so, or file a motion for a court order requiring you to do so. If you filed in April, that means that only 4 months of overpaid taxes are available to the bankruptcy estate. depending on the amount you're getting back, it may not be worth the trustee's time. Usually it's not. If you filed your case later in the year it would be another story. Usually if the trustee wants your tax refund, s/he will get you to sign a stipulation at the meeting of creditors. If you didn't sign anything like that, you're probably in the clear.
    Answer Applies to: Colorado
    Replied: 2/29/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    If your case is not closed, the trustee is entitled to a copy of your return and may take your refund check. However, the trustee is only entitled to a portion of your refund. It would be the amount due you at the time you filed, so the first quarter of 2015, approximately your refund.
    Answer Applies to: Nevada
    Replied: 2/29/2016
    Stephens Gourley & Bywater | David A. Stephens
    The trustee can take part of the 2015 refund.
    Answer Applies to: Nevada
    Replied: 2/29/2016
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    Not if it is under the exempt amount.
    Answer Applies to: New York
    Replied: 2/29/2016
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    If you have been discharged and the Bankruptcy case is closed, the Trustee won't be looking at your refund. If you owe the IRS or student loans that were not discharged, those entities may be entitled to offset your refund.
    Answer Applies to: Kentucky
    Replied: 2/29/2016
Click to View More Answers: