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Taxes-Rob Peter to Pay Paul?

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    Taxes-Rob Peter to Pay Paul?

    Hi all!

    First post here. This board has been an AWESOME resource for me as I go through one of the most difficult situations of my life (and I thought divorce was bad...)

    Here is my question: If your Trustee requires tax refunds to be turned into them, would it be the net of Federal and State?

    Example: I OWE $300 in Federal, but have a REFUND of $800 in State.

    Would the Trustee be expecting $500 or $800? I know what makes sense, but I'm quickly learning...that rule doesn't always apply in Bankruptcy!
    Filed Ch 13: 2/8/08
    Meeting of Creditors: 3/19/08
    Deadline to file complaint: 5/19/08
    Deadline to file proof of claims: 6/17/08

    #2
    Actually, most trustee's don't bother for any amount under $1,000. But your sense is correct, the trustee would want all $800.

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      #3
      It depends on the Trustee and State. I know that mine wanted anything over $250. If $250 is all that I would be getting back than I was allowed to keep it - Whoopie!

      Catchmeifyoucan
      July 2006: Filed Ch13 :blink:
      Oct 2006: Converted to Ch7 :clapping:
      Jan 2007: DISCHARGED :clapping:
      Nov 2007: CLOSED :yahoo::yahoo::yahoo:

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        #4
        Whatever you "OWE" I believe can be put into the plan if you incurred it before filing.
        Filed: October 1, 2007 341: December 10, 2007
        CONFIRMED: December 10, 2007
        Payment: $825 / Mo. for 5 Years-29 MONTHS OF Pmts Down 23 to go!

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