over the refund, which no longer exist due to me spending it to provide for the children and other living requirements. The bankruptcy is due to discharge on July 2, 2012 and the letter that I recieved from the trustee is asking that I produce the refund within 14 days of the letter, which is dated June 12, 2012. I was advised by someone that I could amend my schedules B and C. Please advise what steps I can take for I am not able to afford to pay this.
There's a lot of missing information here, so it's hard to understand whether the trustee is demanding something to which he/she is not entitled, or if there's something you need to do.
If you actually received a tax refund the day before your bankruptcy case was filed, and you deposited it into your bank account (presumably) or cashed it before your case was filed, then it was no longer a tax refund, but either cash or money in your bank accounts that you were required to list in Schedule "B" of your petition.
If you had not deposited the refund check yet, then that refund amount should have been listed in Schedule "B".
In either of the above cases, if you did not exempt the relevant amount in Schedule "C", then it belongs to the Trustee and must be turned over. Failure to do so is grounds for denial of your discharge. Thus, you may be able to amend schedules "B" and "C" now to correct them, but whether or not you have exemptions available to cover the amount in question depends on which state's exemption laws apply in your case, how much you've exempted on your other assets, etc. etc. etc. Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections. Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
Last, if you actually received and somehow spent your refund all in the same day, before you filed your bankruptcy case, then the Trustee is entitled to a breakdown of what you spent it on, but as long as it was for necessary living items, then it shouldn't be an issue.
Sounds to me like you need a bankruptcy attorney. I would suggest scheduling a consultation with one in your area ASAP.
Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of CaliforniaHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter: @bklawr
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