The sum of the tax refunds ($10,749) is under the 522(d)(5) exemption limit, and the attorney did list the refunds as exempt under the exemption on Schedule C. However, the trustee warned that she was entitled to 20 percent of the debtor's tax refund. She said she based her entitlement on "the date debtor filed in 2012." Any idea what the trustee is getting at?
I have honestly never heard of this or experienced this in any of my cases, which there have been thousands, it seems if you exempted them properly then they would be exempt, if the trustee pursues this any further request the code or case law they are referring to in regards XXXXX XXXXX 20%.
Also I did a quick through my bankruptcy guides and codes and found no mention of this.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).