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    tax return checks

    I was wondering in the state of Michigan if there is any amount if any that you keep for your chapter 13 filing as far as tax refunds are concerned. And does the tax return expedite the time for the bankruptcy

    #2
    Originally posted by erikj1225 View Post
    I was wondering in the state of Michigan if there is any amount if any that you keep for your chapter 13 filing as far as tax refunds are concerned. And does the tax return expedite the time for the bankruptcy
    Not sure if I am reading your question right, but I am in the Eastern district and had to pay in 100% of my Federal refund for each year of my 13 plan. And I also found out you do not get to "net" state and federal. It does not matter if you had to pay state, you still send in the full Federal amount.

    Paying in the tax refunds does nothing to shorten your plan unless you are paying back 100%. Less than 100% payback and they simply increase the payback percentage and you pay your regular payments until the end.

    Now I have seen cases on PACER where folks have been successful at filing an amendment to keep some of their returns for "unexpected" expenses. But my understanding is that the judges only allow that if the expenses are documented and truly "unexpected". Things like the kids needed new clothes do not fly.

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