How Long Does This Take? And What About Tax Filing?

Question:
I have a feeling something's not right. I filed for Ch 7 last year. Had my trustee's meeting in the 1st week of January. I was asked to file an affidavit about certain intellectual property I have, that is worth nothing right now but could be if and when I make a sale of my book, with the understanding that if I make money off of it, then the advance I get would fall into the hands of the bankruptcy estate. Not thrilling but that's life. OK, fine. The idea was that after the affidavit was filed, then my bankruptcy is discharged. The court date was for 1st week of March. Nothing happened. My lawyer tells me he has no idea when it would be discharged and that the court date was just the deadline for when I have to have my material by the trustee. How long will this go on? My lawyer won't tell me. In the meantime, I still feel on edge because it's unresolved, that the longer this goes on the longer I can't make more than a living wage, and he (lawyer) is telling me this could go on indefinitely. This does not seem right. Also should I file my taxes or get an extension? And will they take whatever refund I get?

Answer:
It sounds if you need a face-to-face with your attorney. While he certainly can't know for certain when you'd get your discharge, not having *any* idea doesn't sound right. You should ask what the hold up is, and why it won't be entered within, say, the next 30 days. The refund is one of your assets. It probably end up being exempted, but this is not certain. Ask your lawyer about this. If you are going to get a refund, you can not "protect" it by not filing: your total tax payments over the last calendar year (plus refundable credits such as Earned Income Credit), minus your tax liability for the same year, ARE your refund. You have already made those payments and incurred those taxes. (It is no different from any other debt for which you are the creditor.) Your refund, as an asset, already exists. I believe your copyrights have no value until you actually start selling the copyrighted works. So, your royalty payments, etc. have the same status as possible lottery winnings, bonuses, TV game show prizes, etc. Such assets do not yet exist. If they do come into existence in the near future, they will affect your bankruptcy case.





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