Chapter 7 Bankruptcy Question? Hello everyone. I wanted to ask a press about Chapter 7

Hello everyone. I wanted to ask a press about Chapter 7 BK. If anyone know the answer to this question, I would greatly appreciate it. Well, I am file for Chapter 7 BK, and I just not long filed my taxes( after I file an extension). My attorney told me that if I file right in a minute, then I would hold to surrender my tax refund($5000) to the trustees. However, If I keep on till I receive the tax compensation and then spend it, afterwards file for Chapter 7 BK, that I would no longer be liable to appendage over my tax settlement because I got it until that time I filed for BK. I know that I should trust him because he is the BK attorney, but it basically sounds kind of chance. The last item I want to happen is that I spend the export tax refund and the consider tell me that I own to give the excise refund to the trustee. If anyone have knowledge on this topic, can you permit me know? Thanks!

Answers:
Listen to your attorney.

Part of your Bankruptcy filing is have to provide your previous years tax returns. The Trustee will see the return on the return and for 5K probably inquire about it. In most cases if you can prove correct how you had to spend the money(Bills, Food..etc) you will be okay. That is if you move about out and purchase a Big Screen TV or a boat you are probably not going to be able to hang on to the Refund no matter if you database before or after you receive it.

It is going to be up to the trustee and determing your other allowances as if you would own to give up/back the reimbursement. So I would say freshly wait to record until after you receive the refund as your attorney have said.

OC1099 is correct.

As long as you can document that you spent the money on things that were required resembling bills, clothes, utilities etc. you should be fine.

Anything else will be looked at as fraud and you will have to repay the money.