Turning over refund

[billybob37]

What happens if we don't send the trustee our refund? We need car repairs and to pay our self employment taxes. Will they dismiss our case?

[keepmine]

The trustee has the power to dismiss your case if you don't comply with all directives.

[krielly]

Were you instructed to send your refund to the trustee?
Do you have an attorney? If so, I would ask he/she to request that you be allowed to keep the portion needed for your repairs. I have heard of others doing this. Couldn't hurt to ask.......

[rrockinggramma]

Just a heads up. This is the first year I received a refund from the IRS. Within a week of receiving my 150.00 refund, I received a letter from the trustee's office reminding me that all refunds were to be turned over to his office. The IRS sent his office notification that I had received a refund and the exact amount. So there was no escaping it. If you have serious repair issues, get in touch with your attorney and ask him to motion the trustee to allow you to use the refund for those repairs. Be prepared to have written estimates etc as proof.

[upsman4767]

I was told by my attorney that if I got the check, it was mine. I'm in TN. I got the check in March, and no word from the Trustee demanding it. So I spent it.

[Flamingo]

Any extra money received during the course of your Chapter 13 no matter if it is a raise, tax refund, inheritance, lottery winnings, bonus, etc., falls under the control of the Trustee who is in charge of all your finances from the day you file to the day you are discharged. If you do not report your refund, you risk dismissal. If you are directed otherwise by your attorney or it is listed in your Plan that you do not have to send in your tax returns each year or send in any refund, then all is fine. If it is not listed and no one said anything to you, do not surmise anything and contact your attorney.

While it would be nice to keep, it really is not yours. However, if you have major repair work needed on your house, advise your attorney of the work that needs to be done and get estimates of the cost to prove to the attorney/trustee where the funds will be spent. Your chances are good that you will be able to keep the funds under those circumstances.

[krielly]

There seems to be a lot of disparity with this issue.

Definitely check with your attorney. Some trustees take them, ours has never asked for returns/refunds, etc....... and we've been in the plan for 30 mos now. I think from what I've read here though that we are in the minority.

K

[ltrain823]

What state are you in Kreilly?

[krielly]

Vermont

[Crainial Access]

My approved plan stated " notify trustee of any funds received greater than $2500.00 other than regular monthly income." Pretty clear directive.

[wayne-o]

I filed old law, so it might be different now. But my trustee said that as long as unsecureds were getting at least 20% I got to keep my refunds.

[billybob37]

I will speak with my attorney about it and hope I can keep some of it anyway.