Legal Question in Bankruptcy in Nevada

I filed a Chapter 7 and was granted discharge in Sept 2010. I filed my 2010 tax return and the IRS told me my refund was released to my trustee. I have send a copy of my tax return and a letter to the trustee along with multiple phone calls and have not received a call back or any information on my refund. I have researched and have not been able to find any information to help me understand this. Is it legal for the trustee to take my refund? Where can I find information? My attorney will not answer and questions as the case was over in 9/2010. Where can I go for help?


Asked on 6/10/11, 3:22 pm

1 Answer from Attorneys
Dorothy Bunce

The Trustee is entitled to take 9/12th of your tax refund, which is the portion you had set aside with the IRS before you filed bankruptcy in 9/10 - 12 represents 12 months in the year.

Did you claim an exemption of any portion of the tax refund? If not, then the Trustee will only have to return 3/12ths of the refund to you.

It typically takes 4 - 6 months for the trustee to process your tax refund before sending your portion back to you/ If you feel you must complain, the Trustee is supervised by the office of the US Trustee & their office is on the 4th Floor of the Bankruptcy Courthouse.

I can assure you that the Trustees in Las Vegas are bonded, that their jobs are very important to them, and that you can rely on receiving your fair share of the tax refund allowed under the bankruptcy laws. But if you think being a squeeky wheel will help, knock yourself out! In my world, I deal with the squeeky wheels only when I have to.

Hope this perspective helps!

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Answered on 6/10/11, 4:30 pm


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