Back taxes and chapter 13

[JazzyC]

I am new to this site, but, I am glad to converse with others in similar situation. I filed Chapter 13 last year. I also owe taxes from last year. I filed so that I could keep my home. My attorney wants me to walk away from the home. I refuse. I am having a hard time making ends meet because the trustee is garnishing my pay. The Irs took my tax return for this year. Will they also take the stimulus check? I could use the check to pay some over due bills.

[lrprn]

I filed Chapter 13 last year. I also owe taxes from last year.

Are the taxes you owe listed to be repaid as a part of your Ch 13 plan? Or are they from after you filed?

I filed so that I could keep my home. My attorney wants me to walk away from the home. I refuse. I am having a hard time making ends meet because the trustee is garnishing my pay.

Why is the trustee garnishing your pay? Did you have an asset that couldn't be protected by your state's exemptions that you are paying the trustee to keep?

As hard as it is, you need to look at your situation in the most emotion-free way possible. A house is just a thing and things can eventually be replaced. The love you feel within your family and everyone's peace of mind can't.

Your life is hard right now because it sounds like you are overextended on your home compared to the income you have, even after filing. Your worth is not determined by a house - it's in the decisions you make for yourself and your family to create the best living situation for yourselves now and in the future.

The Irs took my tax return for this year. Will they also take the stimulus check? I could use the check to pay some over due bills.

If you still owe federal taxes to the IRS, then yes, the IRS is going to take your stimulus payment and apply it to what you owe. They will send on anything that's left afterwards. If you owe just state or local taxes, then you will receive your stimulus payment.

It worries me that you have overdue bills after filing Ch 13. If the bills are late and the lack of cash wasn't caused by some unexpected temporary shortfall, then again you really do need to take a hard look to see if keeping this house is really the right thing to do in your situation.

[JazzyC]

I filed my taxes late last year, so, the back taxes were not included until after I filed. However, they were listed just later. Garnishment, I was told is part of the plan. The option was not mine to make. I agree that a house is just a thing However, I am a single mother. My son has one year left in high school. I am trying to hold on. Also, I am attempting to get refinanced thru the state.