tax return, student loans

[azmom]

Hi, I am 13 of 60 payments down on Chap. 13. Last year I received a tax return and was able to keep it but I had filed BK in Dec.08, taxes in Jan.09 so may have been too soon for gov't to catch up. My student loans which are outside the bankruptcy are on "hold" during the 60 mos. of the BK. Anyone know if the IRS will keep my return this year due to the student loans? Wouldn't be much as I keep the return very close but if they do, how do I get accounting of what was paid to whom? I have a consolidated loan thru Sallie Mae. Any ideas? Thx.

[lrprn]

Anyone know if the IRS will keep my return this year due to the student loans?

Hmmmm.....since your SLs are on deferment for the length of your plan, why would the IRS keep your return? They can't just send it to SallieMae - that would not make your trustee happy.

Ask your lawyer, but the only thing you have to worry about with your refund is if your trustee wants it. That's going to depend on how your trustee treats tax refunds during an active Ch 13. Your lawyer can tell you what to expect.

[azmom]

And I thank you for the response. I did call the lawyer and they said no way they can keep. My trustee has not required I send to him either so have been fortunate. Not a whole lot but all of it counts!!

[lrprn]

I did call the lawyer and they said no way they can keep. My trustee has not required I send to him either so have been fortunate. Not a whole lot but all of it counts!!

Great news that you will get to keep your refund! Glad to hear it!

[optimistic1]

And I thank you for the response. I did call the lawyer and they said no way they can keep. My trustee has not required I send to him either so have been fortunate. Not a whole lot but all of it counts!!

Thats good news for me, thanks for the insight.