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341 - Taking Tax Refund With Monthly Payments

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    341 - Taking Tax Refund With Monthly Payments

    My 341 was May 13; they were processing 6 cases per hour for the entire day, so it was quick.

    I'm well above my state's median income but have a hefty mortgage and IRS income tax debt so was able to pass the means test, but I feel like it was borderline, especially since I'm surrendering the house.

    The 341 seemed to go fine; the trustee never mentioned my income level or the means test. All he was really interested in was my checking account balance the day before I filed and my state income tax refund. He said he was going to take 25% of the checking account balance (wages) and the entire tax refund, payable over 10 monthly installments.

    Does this mean that it's likely my case will stay a Chapter 7 (not be recommended for Ch 13) since I'm now scheduled to give up non-exempt assets starting next month? It's about $120 per month for 10 months, so I can live with that.

    Since the payments will be going for 10 months, does this impact my discharge date? Can I sell my exempt assets after the discharge date, or do I need to wait for the case to be closed? I might see if I can accelerate the payments to the trustee if it will pull in my closing date.

    I have priority debt to the IRS and have been making installment payments to them. Will the non-exempt proceeds collected by the trustee be paid exclusively to the IRS priority debt or distributed to the non-priority credit card debt? I'm hoping it will go to only the IRS since this debt won't be discharged. Oh yeah, the trustee is also going after funds that were being garnished from my pay three months prior to filing; hopefully this will go to my IRS debt as well.

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