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.
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Even if you discharge a tax debt in a bankruptcy (which can be done in limited circumstances), the lien associated with that debt is not released by bankruptcy proceedings. … The result is that you may come out of bankruptcy with no tax liability, but there may still be a lien on your property. That lien attaches to any equity in your assets that existed prior to the bankruptcy and was exempted in the bankruptcy. For example, if you owned your house and filed bankruptcy with $20,000 of equity in your home, you may have been able to exempt that equity in the bankruptcy through a homestead exemption (so that you could keep your home). If that happened, after your bankruptcy was discharged the IRS would still have a lien against you that attaches to that $20,000 of equity (but not to any equity that accrues after the bankruptcy filing).
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 bankrupt…cy 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.
If you filed Chapter 7 and were dismissed due to what the trustee said were fraudulent circumstances under code 707 will you be prosecuted and have to pay fines?
Answer . \nBankruptcy fraud is an extremely serious issue and is definitely subject to prosecution, subtantial fines and incarceration. Because it is a federal felony each… proven count of concealment constitutes a separate criminal count. Each concealment count that the defendant is found guilty of carries a mandatory 5-year prison sentence which usually will be imposed to run consecutively. It would be in the person's interest to retain legal counsel as soon as possible or at the very least legal advice from a qualified bankruptcy attorney.
Answer . \nThe party involved will have to remit the amount to the trustee or formerly exempted property can be seized and liquidated to cover the amount of the tax refund…. If neither option is possible the trustee can request that the BK be dismissed with prejudice.
It is 180 days before you can refile
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 . \nThe trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
Yes you can, as long as it was dismissed and not discharged.
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 had 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).
My chapter 13 bankruptcy was dismissed by the court and the trustee on July 23 2008 can i refile so i don't lose my house?
It will depend on why the previous case was dismissed and what motions have been filed to allow you to keep the house previously. If the court has overtuned your Motion to Sta…y (meaning when you file your creditor is put on notice they cannot foreclose as long as you keep your end of the bargain which is to continue your payments) If your payments fall delinquent again after filing your Mortgage company can petion the court to be removed from the restriction of not being able to foreclose on the property. If the court rules in favor of your lender and allows them to move forward due to non-payment you will most likely lose the home. Don't try to determine this yourself. If your current attorney will not refile for you check with other local attorney to see if it is possible.
No, if you're in Ch. 13 you're supposed to send your refund in to the trustee who will calculate the 'reasonableness' of the refund and send you any excess (sure they will)
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…paid. 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.
You can ask the court to reopen your case, or you can file new schedules.
The usual time, with no major complications, is around 3-4 months from start to finish.
It depends if you are at the end of your bankruptcy term, then it is a good thing. If you are not then it is probably a bad thing. I am in Chapter 13, and I had that happen.… I received a motion to discharge and thought it was wonderful until I realized that the trustee was claiming that they did not receive all of my payments. Which, was both confusing and astonishing since I had been paying my attorney directly (which I found out later is not supposed to happen), and he was passing the payments on to the trustee. The situation was corrected, apparently there was a misapplied payment or something, but in my situation the "discharge" wasn't good. So, if you are in the middle of your bankruptcy you should contact your attorney or as a last resort the trustee's office to find out what is going on. A discharge in the middle of the bankruptcy usually means there is a missing payment, or missing information they were supposed to receive, or even a violation of the terms of bankruptcy (i.e. getting into new debt). I am not an attorney I can only tell you what my experience was. Also, do not avoid this the sooner the better. If you are missing a payment they can even do some kind of modification, were they take the missing payment and spread it out through out the rest of your payments. But, your attorney will have to do that for you. ALSO, a word to the wise...your attorney is supposed to stick with you through out the whole process. So even if you are 5 years into your term..if something comes up they are supposed to represent you. I had a hard time getting hold of my attorney for a while and I though it was because he didn't need to deal with me anymore. Then, I called the bar association and they assured me he is my attorney until the ENTIRE process is over. Good luck!
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.
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…hat is, each creditor gets an amount equal to the percentage the debt is to the total indebtedness. You are not likely to get anything back, but if all the debts are paid off 100 per cent and the trustee is not entitled to any more money, the balance will be paid to you. The trustee should have decided what s/he is going to do. If you have a lawyer, s/he should discuss it with the trustee. You can also talk to the trustee or your case manager. I doubt you will get any of the refund, but make sure to stay on top of the issue and get notices of any trustee motions regarding these funds.