No, but it sure is a good idea.
The bankruptcy trustee normally only gets paid about $60 a case from the court to conduct the 341 meeting of creditors. He also makes a commission on assets recovered, so he makes more money if he can discover assets worth selling off and using to pay creditors.
Most people don’t have assets worth selling off, or if they do, I can usually exempt or protect them. However, the trustee loves to look at equity in your home, your cars, and how you used your tax refunds.
At the 341 Meeting of Creditors, the trustee will ask you what you spent your refund on. If he doesn’t like the answer, he may ask us to produce receipts for the expenditures. Normally, the trustee doesn’t ask for those receipts, but if he does, it is very, very helpful to provide them.
This is not legal advice. If you need help, go to www.robertspaynelaw.com.