Change My Payroll deductions after filing 13 - Los Angeles, CA

[needadvice1]

Good morning all,

I have not yet filed for 13 maybe after the holidays.

I spoke with a BK senior paralegal about changing my payroll deductions after I file Chapter 13. He said I can and to see my Tax filer to determine the new amount.

My question is after I file for Chapter 13 can I adjust my payroll deductions so my empoyer takes out less money,therefore, I get more on my payroll check. Currently I have it set up were I get roughly $4400 from Federal and $150 from State. But I heard that the trustee will intercept all tax refunds while I am in Chapter 13. Of course I dont want to give up that kind of money so can I change my payroll deductions to get more take home money. Keep in mind the $4400 tax refund is to payoff my yearly house property taxes of $2500.

Thank you,

needadvice1 - Los Angeles, CA

[woeisme]

I changed mine, it hasn't been a problem. Actually my trustee doesn't take tax refunds anyhow, unless they are over $6500, so I didn't really need to change them, I just found it more helpful to have the money for my monthly expenses than to get it all in one lump sum later.

[CindyLou]

I would be sure and keep the "extra" disposable income in a seperate acct and then show that you used it pay off your yearly taxes BEFORE the trustee sees your tax return. They could interpret this as extra income and raise your payment unless you have an expense, such as this that you did you already list.