How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Roger Your Own Question

Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26390
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by West
6704987
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

i filed chapter 7 bankruptcy in july 2010. My 341 meeting of

Resolved Question:

i filed chapter 7 bankruptcy in july 2010. My 341 meeting of creditors is completed and the 90days for all creditors to file a proof of claim expires march 1 2011 (one more month.
One of my questions is... do i have to worry about them taking my 2010 income tax refund if i file or get the return before the date of march 1, 2011? I dont think they can take it but obviously im not sure, so im asking an expert.
Also, approximately when will the bankruptcy be complete where i dont have to worry about anything anymore?
And how long after the bankruptcy closing date do i have to wait to change anything in my life without being penalized, like getting married (with a change of income then) or like being able to sell my house which i was able to keep still filing chapter 7?
please answer all my questions to the best of your knowledge!! thank you
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 3 years ago.

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.

 

In a Chapter 7, your bankruptcy estate (property, money, etc.) is established on the day that the bankruptcy petition is filed and consists of everything the debtor owns as of that day.

 

However, bankruptcy courts have held that a tax refund, or a portion of it, can be an asset, even though you may not receive it until well after the bankruptcy petition has been filed. Most courts divide the tax refund in proportion to the point in the tax year when the case is filed. For example, if you filed a bankruptcy petition on July 1, 2011, halfway through the year, 50% of your tax refund can become property of your bankruptcy estate. Obviously, if you file later in the year, that proportion will be greater.

 

The bankruptcy is completed after the discharge when the case is dismissed and closed. This usually takes a few months after the proof of claim deadline expires.

 

You can get married wherever you want as that has nothing to do with your Chapter 7 - the spouse's income has nothing to do with your bankruptcy. Also, you can sell your house whenever you want. You'll just have to get the court's permission to sell the asset if you do so during bankruptcy. If you wait until the bankruptcy is closed, you can sell it any time without permission from anyone.

Customer: replied 3 years ago.

when will i know if their going to take my income tax refund? Will i get the return and then they may take some or will i owe it to them? Shouldnt they have sent me a letter? Do they always take the return? Im just wondering if i should spend it if i get it or not? What are my chances that i will get it all and they dont?

Also, i thought i had to wait approximately 6 months after the closing discharge date to be able to get married or sell a house or anything with a change of income?!

Expert:  Roger replied 3 years ago.

You should receive the check, and you will have to report the receipt of this money to the trustee. As in the example, because you filed bankruptcy in July 2010, the trustee is likely to keep approximately 1/2 of the money because that is the proportionate amount of the refund for January - July 2010, which would have been part of your bankruptcy estate when you filed even though you hadn't yet received the refund. You should not spend it until you contact the trustee and resolve this issue.

 

Never heard of such a waiting period.....It makes no logical sense because when you file a Chapter 7, your estate is determined at that instant. You could win the lottery the day after you filed and the trustee or creditors cannot touch the money. Marriage has nothing to do with this because it would be an increase in income after the bankruptcy was filed - which is irrelevant. Also, you can sell anything you want, but if you're in bankruptcy, the trustee has to approve and has the right to the proceeds from the sale. However, once you're out of bankruptcy, you can sell whatever you please.

Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26390
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and 2 other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.