Tax Refund

[dylancarly]

I recently had my chapter 13 plan confirmed. My 2005 tax refund was divided by 12 and added to my schedule I of current income. Has this happened to anyone else? So I would imagine I could adjust my withholdings or I will get to keep my 2006 refund if it is about the same. This seems strange because unless I adjust my withholdings now my income is overinflated until I get my refund this spring?

[Jman30]

I recently had my chapter 13 plan confirmed. My 2005 tax refund was divided by 12 and added to my schedule I of current income. Has this happened to anyone else? So I would imagine I could adjust my withholdings or I will get to keep my 2006 refund if it is about the same. This seems strange because unless I adjust my withholdings now my income is overinflated until I get my refund this spring?

I've NEVER heard of this happening before. Normally, either they just take your whole tax return and apply it towards creditors or they let you keep it if it is under a certain amount, or they let you keep it regardless.

Maybe this is something under the new law that I am not aware of, but this sounds really odd to me.

[SinkingFast]

This is odd. You're the first person I've seen to say this has happened to them.

Generally, in Ch 13, the Trustee will not address the income tax refund, state they want the whole thing, or folks here have said their Trustee will allow them to keep $1000-$1500 of the refund and the Trustee takes the rest.

May be it's the way your particular attny figured the plan.

May be that's the way this particular Trustee works.

May be that's just the way your particular Court approaches Income Tax refunds in Ch 13 filings.

[Jman30]

I can't imagine how this could be included as "disposable" income. It's money that the government took AWAY from your disposable income. If they want to count it as disposable income they should not take it out in taxes.