Ch13 and Tax Refund Question when filing...

[y2jamie1]

Hello all.

My wife and I are just starting the Ch13 process, answering the questions and filling in all the info(through an online service our lawyer sent to us). One of the questions is "did you receive a tax refund in the past 3 years?"

Well, yes, we did. BUT, I guess we made mistakes and they overpaid. Now they want the money back. Our state has started to garnish our wages. And we still "owe" repayment of our federal refunds. So, how do we answer that question? I would assume I need to call our lawyer...just thought I would post it here also. Yes, we did receive refunds, but yes, they are wanting that refund amount back. Also, with our state, on paper, we got a refund, in actually, since we owed for medical bills, we never "received" a refund either..it went straight to medical.

Another question, when we file for Ch13, will the garnishments stop?

Scared and anxious,
y2jamie

[lukesky]

Hi y2mamie,

Hi, I am not a lawyer but I have been through a few bankrupcies and now I am in the early stages of a Chapter 13. Yes, I believe your garnishments will stop on the day you have your meeting with a lawyer. YOU NEED A LAWYER TO DO THIS, YOU CAN DO IT ON YOUR OWN BUT IF YOU DO YOU MIGHT AS WELL JUST GIVE UP!! The lawyer can easily contact the IRS with your bankrupcy case number and what every you owe you can put it into a chapter 13 are if it is a chapter 7; sometimes a hardhsip discharge/payment plan of taxes can be given and in some cases depending on where you live you can keep your refunds. YOU NEED TO CONTACT A LAWYER TODAY AND USE YOUR FREE CONSULTATION FOR ANSWERS!!

Thank you,
james