Chapter 13 Tax refund

[Wonderdog]

We are in the first year of our plan and will be receiving about $5,000 in tax refunds. We are required to turn the refund over to the trustee, but i believe that we can petition to keep all or some of the refund amount. What are successful reasons to be able to keep part of the refund?

Also, what will happen to the amount of the tax refund given to the trustee? Will it go against our amount owed?

What happens if we pay off the amount owed prior to the 60 payments? Will the plan stop once the amount owed is paid?

[spidge]

You would have to prove a hardship in order to keep it. If you are in a plan that pays back less than 100% then the plan base will go up the amount of the refund. It does not help pay down what is pledged in the plan and does not replace any payments. Now if you are paying 100% to your creditors you may have a chance by asking the trustee.

I am in my last year and hope to keep mine to apply to an adversarial proceeding to complete my lien strip, but we will see.

The only way to know is to try calling your attorney and have him/her ask.