Filed chapter 7 . had my 341 meeting last week 6/17. Asked about refunds. State was received, Federal was not. Checked IRS site over the weekend and it said my refund was delayed due to the BK. Well...today I received the check. Check is not much $225 to be exact. The Trustee did not say anything about holding on to the check. Can I cash this, and if I do have to give it back write my own personal check, or should I hold on to the original check? I know the amount is not much, but I'm trying to follow all the rules of this long process. Thanks, Mike
Re: Tax refund/Cashing Check/Chapte I had a BK7 two years ago, and during the process had an IRS refund due to me -- like $1500 or so. I did state this as an asset on the BK form. There was a sign in the lobby of the court stating that there could be a delay in receiving my refund, as they had to check with the IRS about the BK. Nothing was said in the courtroom. My refund was in fact delayed a little bit, but I cashed it with no problem. Since you said that this was an asset it's just like every other asset that you have including the very clothes on your back, and it's excluded from the BK. It's okay to cash, and the BK is a done deal. No reason to turn over to the court. You could ask your lawyer, but mine did not ask me to turn mine over and I never expected they would.
