Q: During covid19 pandemic I've spent my 2019 return instead of relinquish to trustee on my rent. What are possible outcome
filed bankruptcy in January 2020. I recieved a 2019 return in February. Needing to pay bills because of lost income we used our return to pay rent. We lost over 2k monthly because wife was furloughed and unable to obtain a income.
A: This is a very serious situation. The trustee has an obligation to collect the estate's percentage of any non-exempt property, which includes tax refunds. If you have an attorney - contact them immediately. If you do not have an attorney - make arrangements to pay the appropriate amount to the trustee. Your discharge can be revoked if you fail to comply with the court orders, which means all the debts you have can never be discharged in any current or future business. If you do not have an attorney - consider talking a volunteer attorney at the Self-Help Center at the Arizona Bankruptcy Court.
A: You’ll have to repay the trustee for the amount of tax refund. Otherwise this can revoke your discharge or dismiss your case.
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