Hello everyone! Our Chapter 13 paperwork was filed by our attorney on 11/21/14, we had our 341 hearing 01/06/15 and I think it went okay; was asked standard questions and then he dismissed us. I guess we just wait now. My question is concerning upcoming tax filings. I have our tax return all ready and ready to file for 2014 and we are expecting a refund of $5200.00 - do we turn this refund over to our trustee automatically or does it have to be stated in our plan that future tax refunds are given to the trustee? Ive read a lot of things about this - some people say yes and others say only if it is stated in your plan. Do all plans have this provision, is it a standard thing or will we get lucky and the trustee not put it in our plan?
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It depends on your plan. Ask your attorney.
Also, most of that refund was an asset wen you filed on 11/21. Was it reported as an asset and exempted if possible? If not, tell your attorney about it. If it isn't exempt, then your plan will have to pay at least $5200 to unsecured creditors during the life of your BK.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
Hi kellyandme... I am in PA.. I never had to turn in a tax return or a refund to my trustee. I think every state/ trustee is different. I never had a huge refund but it helped me catch up my property, school , local taxes and my home owners insurance for the entire 5 years. As soon as I got my refund those were all paid for the year. Its was a god send .....Those who live in glass houses should not throw stones
Chapter 13 filed 10-21-09
Discharged 4-13-15
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It has to be stipulated I paperwork i think. I turn my in, so i try to come very close to zero owed or paid. I am jealous of those that get to keep it. But u really should not let the gov borrow that much money! ;/)Originally posted by klandsb View PostDischarge date: October 2017 (will it ever get here?)
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We have to turn in everything over $1500. Last year we only got $1400, so it shouldn't be an issue this year...Chapter 13 - May 2014
Broke but not broken...Comment
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It boggles my mind that people don't get to keep their refund. What's the difference between owing zero at the end of the year or getting a 6000 dollar refund? Doesn't seem fair, either way that money should be yours. Seems crazy that someone would have to lose a 6000 dollar tax refund at the end of the year but not have to pay an extra 500 a month into your 13 plan if your tax return is zero.Comment
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dmc-2008.. U make a good point.. I have been working for close to 40 years and look forward to that tax refund every year... Hard to teach an old dog , new tricks.... Probably 1/4 of my income is overtime which they kill me on taxes and it fluctuates yearly but its nice to have that money to pay the things I mentioned in my above post.Those who live in glass houses should not throw stones
Chapter 13 filed 10-21-09
Discharged 4-13-15Comment
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A Chap 13 debtor is supposed to pay all disposible net income into the plan. If your withholding is so high that you get a $6,000 tax refund, then your DMI should include that refund of $500 per month or should provide that your tax refund gets turned over to the trustee. You don't get to use the IRS as a savings account at the expense of your creditors. It is the equivalent of including a $500 deposit to a savings account each month. Of course, it is more likely that a trustee will notice the deposit to a savings account. I think some trustees pay closer attention to this part of the budget than others.Originally posted by sandlunatic View PostLadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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