Legal Question in Bankruptcy in Illinois

New Chapter 7 Bankruptcy Law - State of Illinois

I filed a chapter 7 bankruptcy back on 12/18/06 and it was discharged on 4/24/07. However, I had to supply the bankruptcy trustee with my 2006 tax returns. After reviewed, the trustee noted that I would have to turn over to him $2,783, which was the non-exempt portion. When I filed my case with my attorney (which I had many problems with) the attorney mentioned that he would be able to protect $4,000 of my tax returns (that’s what I estimated them). I receive a letter from trustee stating something about a 351/361 (96.16%) $5,618 being property of the estate. I received total of $5,842 in ’06 taxes ($5,277 from fed & $565 in state). How is this possible I have to turn over $2,783 and who’s getting it since my creditors’ not? What can I do?


Asked on 8/22/07, 12:24 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: New Chapter 7 Bankruptcy Law - State of Illinois

I am not sure of the total details of your case and how the trustee is coming to that number. However, if you turn the money over, a notice to file claims would be disbursed to creditors and whoever files claims would receive a pro rata share of the funds (including the trustee). While the case has been discharged, it sounds like your case has not been closed yet. This essentially means the trustee is still waiting to distribute the assets of the estate.

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Answered on 9/04/07, 6:13 pm


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