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Taxes refunds and Chapter 13

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34Roses
Contributor

Taxes refunds and Chapter 13

In Chapter 13 are the debtors required to give their tax refund to the trustee.  We live in MI.  Is it different in every state.

 

Thanks


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creditchief
Regular Contributor

Re: Taxes refunds and Chapter 13

Hello 34Roses, During my 13, my trustee told me the IRS special procedures would direct my refund to the trustee to be used in my plan. But when you first file you will be given notice of how much you will still be allowed to still receive. Mine was 2000 with anything over going to my plan. If you think yours will be more or less you should change your deductions at work to avoid the whole thing. I hope this will help you. Good Luck !!

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Anonymous
Not applicable

Re: Taxes refunds and Chapter 13

Your suspicion that if varies is correct, by state, court district, and even trustee. My case did NOT require me to send my trustee either my refunds (which were minimal, as I habitually make sure my withholding is barely enough to pay the liability; I hate loaning the government my money interest-free!) or copies of my tax returns through its four years. Your lawyer should know what local rules require.
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