Tax question

[casndan]

So we filed Chapter 7 on January 1st and we had to convert to a Chapter 13 because basically we make too much money (barely) my question is that we were told that we would have to give up our tax refund when we filed the chapter 7 but when we got the paperwork for our chapter 13 it says 0 for our tax refund. Our 341 meeting is not until March 10th, but we will have our refund next week. So, do you think we will get to keep it?

Also I should say hi! I've been lurking for a few weeks and I've found a lot a very helpful information

[momofthree]

In a ch.13 plan, you are allowed to keep non-exempt assets as long as you pay at least that much into the plan to unsecured creditors during the plan term. For example, if you were receiving a $5000 tax refund, you could keep that refund as long as you plan calls for your unsecured creditors to get at least $5000 over the next 60 months (around $83/mo minimum payment). My guess is that your payment to unsecureds is already above the amount of your refund, so you should be allowed to keep it without any issues. As always, consult your attorney.

[BKParalegal]

Yes consult your attorney, there are local rules in every district and they vary drastically. For example, one district you keep the first $2000 of s refund and the balance is paid to your unsecured creditors above what you are paying them now, other districts you keep none of your refund and all of it goes to unsecured creditors.

Good luck