Typically the Trustee will have you sign a stipulation at the Creditors' Meeting to turn the refund over to the Trustee. For example, if you filed your BK on November 1st, 10 of the 12 months have gone by. The Trustee can take 10/12's of your refund, or 83% of the refund. If any portion of the refund is Earned Income Credit or Child Tax Credit, the Trustee can not touch that portion of the refund. Lastly, as a practical matter, if the portion the Trustee can take is less than a $1,000, they generally don't want to touch this amount because it is too small for them to fuss with (Trustees works on a 6% commission basis, and they don't like fooling with real small amounts because it is too much paperwork for the return).
Answered on Feb 05th, 2014 at 9:15 AM