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Tax refund while in Chap 13?

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Grafton88
Established Contributor

Re: Tax refund while in Chap 13?

Yes, I still had to make the regular payment.  I ended up paying $42,000 in regular payments and almost $7500 in tax refunds over the 5 years.

Message 11 of 18
mynameainttracy
Established Contributor

Re: Tax refund while in Chap 13?

I don't think I have ever heard of a payment changing unless the whole plan changes. My guess is that a trustee's office just doesn't have the manpower to manage something like what you are asking.

Message 12 of 18
Anonymous
Not applicable

Re: Tax refund while in Chap 13?

We were in Ch 13 for a couple of years, we had to send the full amount of the income tax to the Trustee. In order to keep some or all of it, you have to get permission from the Trustee. The only way to get the income tax back to you if you inform them that you need to do repair work on the house (major), repair/fix car or need to buy a new appliances because the one you have went out. Or can request for a down payment for a used car along with Trustee's approval to incure a new debt.  You have to provide documentations of the items that needs to be repaired or purchase and they will send you the amount requested. Once they do that, they will require proof of purchase/receipt for the items. 

 

It was a pain but it worked out. 

Message 13 of 18
Anonymous
Not applicable

Re: Tax refund while in Chap 13?

I hope I'm doing this right, my first post.

 

In Nevada, our trustee was super clear on this.  They gave me a handout that I had to sign for receipt of.  The hadout clearly states that not only must I send in my tax forms yearly, but if there is a refund, I must send that in as well.

 

It also quite clearly states that if I get a raise, to go ahead and send that in as well.

 

They REALLY don't want me to have any extra cash. 

Message 14 of 18
mynameainttracy
Established Contributor

Re: Tax refund while in Chap 13?

Trustees can vary greatly. We were lucky. In the eastern district of NC our trustee was great. At the 341 meeting he made it clear that he wanted everyone to succeed in their plans. He allowed us to get credit while in our plan without asking and he didn't take tax refunds or increases in salary. Not the best 5 years of my life but it could have been worse.

Message 15 of 18
Anonymous
Not applicable

Re: Tax refund while in Chap 13?

I did my plan in southern Indiana.  I was require to send a copy of my tax returns, but never had to send any of the refund.  I had also switched jobs a few times, each time making more money.  My trustee told me that he only needed to know about wage increase or moving to a new job if my wages were being garnished, which they were.  I had my monthly payment deducted automatically from my checking account.

Message 16 of 18
Anonymous
Not applicable

Re: Tax refund while in Chap 13?

I'm getting a whole $5 refund this year.  It seems silly to even bother the trustee about it, but I will notify them anyway.

Message 17 of 18
Anonymous
Not applicable

Re: Tax refund while in Chap 13?

I'm almost the same as djenks. Filed in S. Indiana, however they did not want my monetary tax return, or even copies of my filing. Probably not worth their time, as I claimed 0 and ended up with $5-10 returns each year.
Message 18 of 18
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