Research by trustee?

[dyarlett]

Does the trustee do background checks on potential filers and if so, how in depth?

Thanks!

[HHM]

The real question, what are you trying to hide?

[dyarlett]

Since you put it that way...I'm the Custodian of my 9 month old daughters bank account. There's not much money in it, but was wondering if I need to report her account to my BK attorney and Trustee.

[shark66]

Yes you do.

Having said that, it's highly unlikely that you'd ever be questioned about it anytime during Ch. 13.

Just make sure that the amount is less than six digits before the decimal point...

Good luck.

[dbr]

If you keep a tax check on the sly what is the chance of getting caught and what would they do? We asked our attorney, paralegal, and they said we have to provide tax returns for the last three years and the usual new expenses and why we need to keep it. Basically we need to do all things we cannot afford without the tax check like tires and tune ups and clothes and food. That would doom us as we are just now able to make ends meet due to a couple of raises. Our opinion, without knowing for sure of course, is that the trustees are too busy handling thousands and thousands of cases they do not audit very many at all. Does the IRS report the refund? Last year we got it, not as much as this year though??

Any real experience with this matter would help.

[newbie2]

If you keep a tax check on the sly what is the chance of getting caught and what would they do? We asked our attorney, paralegal, and they said we have to provide tax returns for the last three years and the usual new expenses and why we need to keep it. Basically we need to do all things we cannot afford without the tax check like tires and tune ups and clothes and food. That would doom us as we are just now able to make ends meet due to a couple of raises. Our opinion, without knowing for sure of course, is that the trustees are too busy handling thousands and thousands of cases they do not audit very many at all. Does the IRS report the refund? Last year we got it, not as much as this year though??

Any real experience with this matter would help.

Once again, I caution you to do nothing "on the sly". If you need to keep your refund for something that isn't budgeted for in your plan all you have to do is ask your attorney to petition the court to allow you to keep it. BTW, my local court docket is full of "motion for dismissal due to failure to turn over income tax refunds". I see at least 5 cases per month on my courts website.

[frogger]

If you keep a tax check on the sly what is the chance of getting caught and what would they do?

What is the chance of getting caught? Pretty high.

What would/could they do? You don't even want to go there.......

[Pandora]

Agree with newbie & frogger - and if you're curious as to know what the trustee "can do" if you should decide to go that route, there was recently a post (within the past week or therebouts) about someone who was nearing the end of their Ch. 13, did not turn in tax returns, kept any refunds received.... and their entire case is up for dismissal.

Never hide anything and when in doubt - ASK ASK ASK

[momofthree]

If you keep a tax check on the sly what is the chance of getting caught and what would they do? We asked our attorney, paralegal, and they said we have to provide tax returns for the last three years and the usual new expenses and why we need to keep it. Basically we need to do all things we cannot afford without the tax check like tires and tune ups and clothes and food. That would doom us as we are just now able to make ends meet due to a couple of raises. Our opinion, without knowing for sure of course, is that the trustees are too busy handling thousands and thousands of cases they do not audit very many at all. Does the IRS report the refund? Last year we got it, not as much as this year though??

Any real experience with this matter would help.

Ditto the others. We recently had a poster on here who had completed their ch.13 but in the audit, the trustee discovered they had kept refunds that should have been sent to the TT. It was demanded that they submit the money or they would have their case dismissed (after having completed ALL 60 payments!) They had no way of coming up with the cash and were freaking out. You do NOT want to end up in that situation.

On a side note, if you are needing the money for things that you "cannot afford without the tax check like tires, tuneups, clothes, and food" then you are either not living within your means or you have filed an unrealistic plan. Since the plan was confirmed, it would seem that it is a feasible plan, in which case, you are not saving the way that you need to be each month. Each of those expenses should be provided for in your plan and saved for their intended purpose on a monthly basis. If there are new expenses (like increased medical, gasoline, etc) that are eating up your monthly budget, then an amended plan may be necessary.

If you request to keep your tax refund for the reasons you listed, you can expect to be denied as the tt will say the same thing I just did in the previous paragraph...

[Pandora]

Momofthree - thats the post I was thinking of... thanks for clarification as I wasnt sure if it was nearing the end or already completed.

Also wanted to add re: tax returns - if you need that money every month, then adjust your w/holdings accordingly so that you wont get much of a refund back at the end of the year, and instead use that money every month in your paycheck. If you have an accountant, they can give you a mark-up sheet showing what you should change things to, and what your refund will be for the following year; its what we did. You are allowed the IRS standards at a minimum..and any lawyer worth their salt is going to fight tooth and nail to get you the most $ he/she can.