Expert: Terry Leeders - 7/23/2008

Question
We filed Chapter 7 in Nov. 2007 in Ohio. We were discharged in late April. Today, we recived a letter from the Trustee stating that he is using Rule 2004 and wants us to come back with our 2007 tax return (which he hasn't seen- there is no return)and our Nov. 2007 bank statements. What gives?

Answer
The trustee does have the right to look at the tax returns and bank statements.  Technically, your tax refund can be pro-rated over the year, and if large enough, you might have to turn over a portion for distribution to your creditors.  Now, you can exempt some tax refunds and money in your bank depending on your state exemptions, so talk to your lawyer about the specifics.