So you're going to get a tax refund.
And you file a bankruptcy quick like a bunny because you have to (lawsuit, foreclosure, or other).
And now you look forward to receiving your tax refund or stimulus check.
Well, no.
That goes to the Chapter 7 Bankruptcy Trustee. Some of 'em here in Arizona have debtors sign a document indicating that the debtor understands that the check is to go directly to the Bankruptcy Trustee, and that their discharge will be vacated if they goof up and spend the dough.
So don't spend the dough!
The trustee may well return the check, someday, if it's small and there are no other assets. One of the reasons there are so many no-asset cases in Arizona is that a Chapter 7 Trustee needs about $800 to cover the administrative costs of administering a Chapter 7 that has assets.
If the total amount the trustee can accumulate to pay creditors is only two hundred dollars, they may well return that small a refund to the Chapter 7 debtor.
But don't count on it.
Even if the trustee is going to return the check to the debtor because it's a small check, or even if the trustee is going to return a pro-rated amount to the debtor because of the date that the Chapter 7 Bankruptcy was filed in Arizona, it won't be back in the debtor's hands until the Trustee gets a Round Tuit.
And Round Tuits are in short supply in Bankruptcy offices of all kinds these days, because everybody is pretty busy, even folks who were divorce lawyers last week and became bankruptcy lawyers this week!
And you file a bankruptcy quick like a bunny because you have to (lawsuit, foreclosure, or other).
And now you look forward to receiving your tax refund or stimulus check.
Well, no.
That goes to the Chapter 7 Bankruptcy Trustee. Some of 'em here in Arizona have debtors sign a document indicating that the debtor understands that the check is to go directly to the Bankruptcy Trustee, and that their discharge will be vacated if they goof up and spend the dough.
So don't spend the dough!
The trustee may well return the check, someday, if it's small and there are no other assets. One of the reasons there are so many no-asset cases in Arizona is that a Chapter 7 Trustee needs about $800 to cover the administrative costs of administering a Chapter 7 that has assets.
If the total amount the trustee can accumulate to pay creditors is only two hundred dollars, they may well return that small a refund to the Chapter 7 debtor.
But don't count on it.
Even if the trustee is going to return the check to the debtor because it's a small check, or even if the trustee is going to return a pro-rated amount to the debtor because of the date that the Chapter 7 Bankruptcy was filed in Arizona, it won't be back in the debtor's hands until the Trustee gets a Round Tuit.
And Round Tuits are in short supply in Bankruptcy offices of all kinds these days, because everybody is pretty busy, even folks who were divorce lawyers last week and became bankruptcy lawyers this week!
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