bankrupt and confused about tax refund
The 9 months of our bankruptcy are almost up and the trustee informed us that we don’t need to pay him anymore except the $490.00 for a snow blower we kept, that we made an arrangement on. Now they did our income tax and i see that there is a refund. Where does this money go if he says we don’t owe him anything?? Can it go towards the balance of the snow blower?
In most cases a tax refund is an asset of your bankruptcy estate, meaning that the trustee forwards the tax refund to your creditors. It cannot used towards assets you are repurchasing. If you have questions or want a further explanation, I would suggest you contact your trustee, since only they are familiar with your file.