Keeping tax refunds in a chpater 13..is it Possible?

[lukesky]

When during and after I filed my Chapter 13 this year my attorney assured me that in the Kane County IL it is totally possible to keep all tax refunds. I did tell my attorney when I filed it will be used if I have to move early next year due to landlord/building/city selling all not in good shape and I would need that emergency monies to move. Any one else got to keep their refunds needed are not? Thank you.

[dazark]

I am allowed to keep up to 1250.00 refund over that amount goes to trustee. I am in Maine

[sophieanne]

I was in a 100% plan and i got to keep refunds and never had to submit tax returns. The requirement will be on your confirmation notice when you receive it.

[lukesky]

I was in a 100% plan and i got to keep refunds and never had to submit tax returns. The requirement will be on your confirmation notice when you receive it.

Wow, thats great sophieanne, I hope I fall into that situation.

[lukesky]

I am allowed to keep up to 1250.00 refund over that amount goes to trustee. I am in Maine

Thank you dazark, I live in IL and have no clue what will happen with mine. My attorney really has not told me much about it that I believe, yet. Thanks

[lvmilizia]

My confirmation does not say anything about turning in tax refunds, I do have to turn my returns in for the first 3 years, with 2016 being the third year. The first year I have a refund of $1,000 and I did not have to turn it in, 2015 I got a whopping $13, and 2016 I will most likely have to pay about $500. So basically if you have your exemption set right your not getting much back anyway. In 2017 I really should lower by exemption by 1 so I don't have to pay in again.

[LadyInTheRed]

The experiences of others may not be your experience. It varies by trustee and by Chap 13 plan. "Totally possible" is a pretty uncertain statement and does not sound like assurance at all. I would not count on keeping your refunds without a more certain answer, which you may not get until after you send a copy of you return to your trustee each year, assuming the trustee requires you to send returns.

[lukesky]

The experiences of others may not be your experience. It varies by trustee and by Chap 13 plan. "Totally possible" is a pretty uncertain statement and does not sound like assurance at all. I would not count on keeping your refunds without a more certain answer, which you may not get until after you send a copy of you return to your trustee each year, assuming the trustee requires you to send returns.

This is all new to me. So what happens...I get a refund, hold on to it for months until someone says it's mine? Just curious.

[sophieanne]

Hi again,

When you are confirmed..you will know what the requirement is. You will not have to hold your refund (if you get one) waiting to know if you'll be asked for it. It will be very clearly laid out to you.
How long till you get confirmed?????? Once things get going, I think you'll be more relaxed ;)

[LadyInTheRed]

Yes, in most cases you know by the time you are confirmed. But, if it is not clear at confirmation, ask your attorney. bkforum members have reported being surprised after sending a copy of their tax return to the trustee to receive a letter asking to send a refund they already spent. It is not the norm, but it has happened.

[lukesky]

Hi again,

When you are confirmed..you will know what the requirement is. You will not have to hold your refund (if you get one) waiting to know if you'll be asked for it. It will be very clearly laid out to you.
How long till you get confirmed?????? Once things get going, I think you'll be more relaxed ;)

The Court say 11/4/2016 and only my attorney will attend who does not really communicate that well with me, just fag geniric answers so I hope something IS sent to me in writing. Thank you sophieanne.

[sophieanne]

If you have access to Pacer, you will be able to see the confirmation notice online (you will also receive it in the mail). Don't overthink it right now, just wait to see what info is provided, then ask if necessary. You're putting stress on yourself that you don't need to be. One step/pone day at a time!!!

[switch625]

My confirmation order is silent on how tax refunds are treated and my CO does not specifically require submission of tax returns post-confirmation. I have not been provided any instructions directly by my trustee or by my attorney to submit tax returns or had over tax refunds. I have seen sample COs from other districts that do state tax refunds are to be turned over to the trustee, either the entire amount or over a certain amount, such as $1500. I have not seen my trustee file motions to dismiss over non-submission of tax refunds, but there is another Ch 13 trustee in my district who has done that.

[lukesky]

My confirmation order is silent on how tax refunds are treated and my CO does not specifically require submission of tax returns post-confirmation. I have not been provided any instructions directly by my trustee or by my attorney to submit tax returns or had over tax refunds. I have seen sample COs from other districts that do state tax refunds are to be turned over to the trustee, either the entire amount or over a certain amount, such as $1500. I have not seen my trustee file motions to dismiss over non-submission of tax refunds, but there is another Ch 13 trustee in my district who has done that.

Thank you switch625, that is good to know.

[VolFan]

My plan specifically addresses the issue of tax returns. I get to keep up to $2000, and anything over that goes to the trustee. I already adjusted my withholding to make sure I come in under that...

[lukesky]

If you have access to Pacer, you will be able to see the confirmation notice online (you will also receive it in the mail). Don't overthink it right now, just wait to see what info is provided, then ask if necessary. You're putting stress on yourself that you don't need to be. One step/pone day at a time!!!

Thank you sophieanne, your right. I do have Pacer now, its going to cost me becuase I printed out all I could at first and now I just look and no print. I do see my "claims register" now with 3 three and more to come. I like the fact that I can see what is going on. I always try not to worry but it comes natural. Thank you.

[sophieanne]

Lukesky, I totally understand. I'm a must know everything to feel in control kind of person too. I know once your plan is confirmed and the process starts you will relax and just go with the flow. Been there, done that too!!!!