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Tax Refunds/chapter 7 Nevada

Discuss the legalities of Bankruptcy Law

Tax Refunds/chapter 7 Nevada

Postby Kentaro » Thu May 29, 2014 3:00 pm

We filed Chapter 7 in Nevada on July 31,2009.  341 was held Sept 4.  Trustee filed Report of No Distribution on Sept. 4.  A few days after the 341, our attorney sent a letter stating we would have to turn over tax refund even though it wasn't mentioned at the meeting or by the trustee.  I emailed her and she stated we would receive a letter from trustee in December telling us to turn over refund directly to him.  We were discharged on November 5, 2009.  Have not heard from trustee, case is still open.  Is it normal to have a report of no distribution filed and then later have assets(tax refund) to distribute?  I am very confused.  We did exempt $2,000.00 of our return with wild card, but usually get about $5,000-$6,000 back.  Trustee was provided with previous tax returns, but never inquired about 2009s.  
Kentaro
 
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Tax Refunds/chapter 7 Nevada

Postby avitul » Mon Jun 23, 2014 11:53 am

Since you were able to exempt only $2,000, you may have to pay anything you receive above that amount.  Your attorney is familiar with what your particular trustee does, so if she says that the trustee usually sends a letter out, then he probably will.  However, it is possible for the trustee to decide not to take any of the tax refund.  The report of no distribution is filed in cases where the trustee doesn't believe that there's any money to be distributed to the creditors.  The trustee can change the report if money or property that wasn't disclosed on the petition comes in at a later date.
avitul
 
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