Stimulus rebate / tax refund - What happens to it in bankruptcy?

[klux]

yes they applied all of our stimulus to back taxes - even though is part of our bk plan.... no surprise there...

If you don't mind, what state and district are you in? I'm in Wisconsin, and I called the insolvency agency and they said it depends on your local rules. They said since my back taxes were being paid in the plan, that I'd receive the stimulus. I checked for the status of my refund today and it said there is a delay in processing my stimulus payment, reference 1647. I called and they said that code normally means an amended return, which I did. She said she didn't know if I"ll get the amout because of 2005 taxes, but since she didn't know for sure, she said it depends on each person. I suppose i could call my trustee.

[jerzey]

got it

[MotherTrucker]

If you don't mind, what state and district are you in? I'm in Wisconsin, and I called the insolvency agency and they said it depends on your local rules. They said since my back taxes were being paid in the plan, that I'd receive the stimulus. I checked for the status of my refund today and it said there is a delay in processing my stimulus payment, reference 1647. I called and they said that code normally means an amended return, which I did. She said she didn't know if I"ll get the amout because of 2005 taxes, but since she didn't know for sure, she said it depends on each person. I suppose i could call my trustee.

Klux, I got a letter like yours, but with a slightly different code (can't remember it at the moment). When I spoke with the IRS insolvency agency, they gave me the # for our local Field Specialist (i live in Texas). I called the Field Specialist at our local IRS office and she said that according to local rules, the IRS is allowed to retain the stimulus payment and apply it towards delinquent taxes. , maybe you could call Insolvency back and see if you can get the # for your local IRS office? Just a thought...
Man that would be cool if you got some of your $!! I'd be doing the happy dance for ya!! Good luck!
MT

[Carter]

I am 7 months into my 5 yr plan. I have taxes in my plan. My lawyer did not know if we would get our refund of taxes or our stimulous money and said we would just have to wait and see what happens. I am happy to report that I got my refund of $222 and also got my stimulous payment of $2400! My husband and I desperately needed that money and cryed when we saw that it was direct deposited into our bank account. Just a week before the money was in our bank account both our cars broke down and needed major repairs. It's not like we can go out and buy brand new cars, it was truly a blessing from the almighty GOD! I Pray that all of you will get yours too...

[MotherTrucker]

Yay!!! Carter that is fantastic news!! I am very happy for you!!

It just makes my day that try as they might, our lovely IRS isn't able to keep ALL this $$$...particularly when people are sorely in need of it.

Makes my situation more um...palatable?

[jay]

I am glad for you as well...

I have been eagerly anticipating whether we will get our stimulus check for weeks. I have been checking the IRS website regularly and just yesterday finally saw a date of when our stimulus check should be sent. This is about a month after we should have gotten it, based on our SS number. We are in a chapter 13 right now, and I have not been able to find out whether we will even get our check. Does anyone know if the IRS website would say that our check is due to be sent out on a certain date if it was just going to the trustee? I also wonder if, since I filed but my husband did not, will he at least get his portion, even if the trustee takes mine? I can't believe how hard it is to find an answer to these questions. Thanks for any info, and thanks for sharing in all of your posts...I have really learned a lot and been quite comforted by some of your stories.

[MotherTrucker]

Hi Jay!
It's encouraging that you actually have a release date but I would check with your attorney to see what your trustee's intentions are. This is varying from district to district, it seems. Your husband should be entitled to his portion of the stimulus payment if he is not a debtor in your BK, but I am NOT an attorney, so I would ask your attorney to make sure. Or, you can call the main # for the IRS and get the # for the Insolvency Section and ask them when the check will be released and how your local rules are affecting it. I hope this helps and please keep us posted! Hope you get your $$!

[jay]

Thanks so much...despite that being my first post, I knew someone would jump in to help answer my questions.

I will indeed take your advise about calling the IRS, however, my attorney has been a little vague about what to expect from the trustee. One thing my attorney did say, as did you, MotherTrucker (love that name!) is that my husband would get his portion. I guess I just wondered if anyone else had gone through that, with spouse getting their portion only. I also kind of wonder how that will work with kids' portion...we have 2 young boys.

Thanks again friends, I truly appreciate your help.

[TEW]

I just received a letter from the IRS and they have applied my stimulus check to tax owed.
My question is will the trustee conceder it income?

[laurannm]

I just received a letter from the IRS and they have applied my stimulus check to tax owed.
My question is will the trustee conceder it income?

I have the same question...right now I don't think there is any case law that goes one way or the other

[AngelinaCatHub]

I also recieved a form and accounting that our stimulus amount was deducted from my taxes owed. I owe a lot. I sent a copy of the letter to my Trustee. In that, the IRS has first rights on whatever money he collects, it would have gone there anyway, one way or other. 'Hub

[klux]

I got a letter in the mail today stating that my stimulus went towards taxes owed for 2007, but that I should expect the balance within 2 weeks. I hope this is true. I was told that it wouldn't get released until my amended return finished processing (which I'll get a credit back on that then too), but then I got this letter I sure hope it's correct.

[jay]

I am in chapter 13. We have received a letter from the IRS stating the date and amount that we will receive our stimulus check. However, any tax refund that we receive is supposed to be paid into our plan, so I have assumed that we really won't get it, despite the letter.

Someone suggested calling the Insolvency Section of the IRS to see if there is a hold, or freeze attached to our stimulus check. I did indeed call and was told (by a live person) that there were no holds on our stimulus check and we should receive it around the date in the letter. I happened to read on another post that someone had called the same section of the IRS and was given incorrect information.

My question is, does anyone have any experience with calling the Insolvency number and getting correct, or incorrect info regarding the stimulus check? Also, has anyone in chapter 13 gotten their stimulus check that otherwise had to turn over their regular refunds. I am just so anxious about this and getting this check would make a world of difference for my family right now. Thanks for any help...