Expert: Terry Leeders - 1/13/2009

Question
Hello, I bought a home in 2/08 and filled a 13 on 5/08(re: garnishment, car note), my question is, since i'm illegible for 1st time home buyer tax credit this tax season(I also claim 4 kids & house wife) can I wait till '09 tax season to claim that 1st time home buyer benefit, I plan to file a 7 as soon  I get current on my mortgage. Basically I'm trying to save that big lump sum refund from all going to the trustee.  Thank you

Answer
Your local rules and your chapter 13 plan will control on whether you need to turn over the tax refund to the trustee.  If you convert, then it would definitely be an asset of the chapter 7 case. Talk to your lawyer to see what you need to do with the tax refund.  Some jurisdictions, like the Northern District of Illinois, let you keep the tax refund in a chapter 13 unless the plan says differently.