Our Chapter 13 is too good to be true

[cynhgm]

I haven't written in a while but I'd like to make a quick update because things are a little too easy for my taste.

We finally filed in December and have been paying our monthly dues always ahead of time. The entire process was unexpectedly easy and straight forward. We didn't have a complicated case but we were surprised that we got away with such a "low" payment (around $500/month on around $5800/month on average net income). Trustee joked around with us and our lawyer at the 341 meeting plus he never put anything about tax returns in writing on our confirmation paperwork (there is a dedicated part about tax returns on that form).

The tax return is the thing, though. We got an unexpected high return (thanks to all the additional education credits) and not a peep about surrendering the money from anywhere. We stashed away the $6k for now but what are the chances that the trustee's going to go after it?

Anyway, all this is in NYC where the rents eat up more than half of your income and allow you to get away with smallish payments to your creditors.

Can it really be that easy? Did we luck out? Will it get harder?

[newbie2]

I haven't written in a while but I'd like to make a quick update because things are a little too easy for my taste.

We finally filed in December and have been paying our monthly dues always ahead of time. The entire process was unexpectedly easy and straight forward. We didn't have a complicated case but we were surprised that we got away with such a "low" payment (around $500/month on around $5800/month on average net income). Trustee joked around with us and our lawyer at the 341 meeting plus he never put anything about tax returns in writing on our confirmation paperwork (there is a dedicated part about tax returns on that form).

The tax return is the thing, though. We got an unexpected high return (thanks to all the additional education credits) and not a peep about surrendering the money from anywhere. We stashed away the $6k for now but what are the chances that the trustee's going to go after it?

Anyway, all this is in NYC where the rents eat up more than half of your income and allow you to get away with smallish payments to your creditors.

Can it really be that easy? Did we luck out? Will it get harder?

There's your answer (bolded). You live in a high housing area. This is why it is so important for others first coming to this forum to understand that each Chapter 13 plan is different. Your income may be higher, but your expenses are also higher, so your DMI is much less than someone in Clevelands may be..(an example only.)

Glad it's going well for you. Hope it continues.

[NowImDownInIt]

Trustees differ a lot on how they approach tax refunds. Mine doesn't touch them, no matter how large they are, though he advises people to use them wisely. Rainy day fund is wise.

[debtinohio]

Gotta love the trustees who let you keep the tax returns. I kept $6600 this year.

[NowImDownInIt]

I would be interested to see if there is any difference in the success rate of those that are allowed to keep their tax refunds.

[billf1980]

I haven't written in a while but I'd like to make a quick update because things are a little too easy for my taste.

We finally filed in December and have been paying our monthly dues always ahead of time. The entire process was unexpectedly easy and straight forward. We didn't have a complicated case but we were surprised that we got away with such a "low" payment (around $500/month on around $5800/month on average net income). Trustee joked around with us and our lawyer at the 341 meeting plus he never put anything about tax returns in writing on our confirmation paperwork (there is a dedicated part about tax returns on that form).

The tax return is the thing, though. We got an unexpected high return (thanks to all the additional education credits) and not a peep about surrendering the money from anywhere. We stashed away the $6k for now but what are the chances that the trustee's going to go after it?

Anyway, all this is in NYC where the rents eat up more than half of your income and allow you to get away with smallish payments to your creditors.

Can it really be that easy? Did we luck out? Will it get harder?

Your deal isn't as good as you think.

You just have a great attitude about it, and I am guessing you have a stable job too.

Chapter 13 is not a bargain for me, as my job is not stable and I still have over 4 years to go.

Good for you. I would say just keep you mouth shut about most things, especially once you are confirmed!

People on this site advise otherwise, but many of my lawyer friends that don't do BK, said that "keep you mouth" shut, especially after the confirmation, is good.

[Flamingo]

I haven't written in a while but I'd like to make a quick update because things are a little too easy for my taste.

We finally filed in December and have been paying our monthly dues always ahead of time. The entire process was unexpectedly easy and straight forward. We didn't have a complicated case but we were surprised that we got away with such a "low" payment (around $500/month on around $5800/month on average net income). Trustee joked around with us and our lawyer at the 341 meeting plus he never put anything about tax returns in writing on our confirmation paperwork (there is a dedicated part about tax returns on that form).
The tax return is the thing, though. We got an unexpected high return (thanks to all the additional education credits) and not a peep about surrendering the money from anywhere. We stashed away the $6k for now but what are the chances that the trustee's going to go after it?

Anyway, all this is in NYC where the rents eat up more than half of your income and allow you to get away with smallish payments to your creditors.

Can it really be that easy? Did we luck out? Will it get harder?

Here is where you are assuming something and trying to give yourself a pat on the back that all is fine. Do not assume anything as to your Chapter 13 and whether or not to provide your tax returns each year. Contact your attorney, tell him/her what your tax refund was and what do you do. A trustee at any time during your Plan can ask for any financial information so if you are required to submit your tax return and do not, you are looking at a dismissal which is the last thing you want to occur. The trustee is in control of your financial house during your Plan years, not you, so be on your toes, inform your attorney of any increase or decrease in income or changes to your financial status. You are taking a huge risk not to do so without specific instructions from your attorney or trustee. Ask before you assume. Best of luck to you.

[debtinohio]

Yeah - ours specifically told us both at a pre-341 required meeting and later on that we could keep all tax returns. I would check with your attorney before spending it.

[cynhgm]

Yeah - ours specifically told us both at a pre-341 required meeting and later on that we could keep all tax returns. I would check with your attorney before spending it.

We are not planning on spending a cent of this return nor of any future returns. It will sit in the bank until we are discharged. We do borrow against it once in a while, though, but make it a point to replenish it as soon as possible (usually at the time the next paycheck comes in).

All that said, I understand that the Trustee is in charge and I was just seeking out experiences from folks who are more or less in my situation. Anybody from the southern NY district who wants to chime in?

I more or less agree with the poster above who suggested to just shut up and keep quiet. I will do exactly that. I'll follow the trustee's directions (all he wants are copies of our yearly tax forms), will not spend any of the monies that were not accounted for in the plan, and just sit it out while making payments on time. If he turns around and holds out his hand I'll be happy to deliver.

And yes, my stable job, of course helps tremendously and provides me with calm.

Thanks for the input.