I was wondering about tax refunds. My friend that is having trouble with the repo man is going to buy the replacement car with her tax refund. She hasn't filed her taxes yet because she is afraid the BK trustee will keep it and she really needs a car. She will be getting about $3800. Do you think she could file and buy a car while she waits for the BK to be discharged? If she can she will let Americredit have the van right now. Kim
A tax return is an asset even if you haven't filed yet. therefore it would need to be listed as an asset in the bk filing if you EXPECT to get money back from the IRS (even if you haven't filed yet)... Sorry, I know that's not what you wanted to hear...
Anything she gets or spends within 90 days of filing will have to be listed. In a Chapter 7 the tax refund will definitely be considered an asset. Has she considered a 13? In a 13 she could keep all her stuff including the $3800 and devise a pmt plan and pay off her creditors pennies on the dollars. It might be the better way to go for her. clc
