2 more questions...

[JillyBean]

In a CH 13 do you get to keep your tax refunds or not, or does it just depend. I will ask our lawyer this, but when I was looking at our draft she has that figured in monthly as part of our monthly income. Like she took the return divided by 12 and added that as part of our monthly income. So does that mean we can keep our tax returns then?

Also, if we are keeping both our vehicles, and they will be included in the plan, do the payments have to be current on these before filing. Currently I always pay my car payment 2 weeks after it is due because we can't seem to get caught up on it. I guess I could try to make a double payment on it if that is what we need to do.

Thanks for all the help!

[mynameainttracy]

From what I have seen on here it depends on your trustee. My trustee doesn't, but I am not leaving it to chance. I changed my witholding to make sure I won't be getting one in the future.

[jamist649]

Tax refunds vary from district to district. I recieved my first one this past February while in the plan and the trustee didn't blink. The paralegal at my atty's firm said that our trustee usually doesn't touch tax refunds, but again it does vary. Not sure about your second question, our vehicle was paid outside the plan.

[chloe0724]

I was told that the judge we got makes you give anything above $250 in tax returns. We have changed our witholdings to fix this.

As for the cars, I think you pay them in the plan if you are planning on cramming the value down.

[liz417]

We were told (California) that we would be turning over all Tax Refunds and Bonuses through our 5 year plan

[AtWitsEnd]

Our tax return was divided by 12, same as yours and added in our monthly income total. We get to keep ours but have to send him a copy of our return when we file every year. But you knew that lol.

[kornellred]

Tax refunds you have already received are in fact income, and the refund will get folded into the calculations for the determination of your total income for BK purposes. That part of it is a matter of timing. Future refunds, if any, may be confiscated by the trustee assigned to your case.

What I would like to know is if this action must be stipulated in the Chapter 13 plan confirmation, or if the trustee can simply require a debtor to hand over the refund.

[cwillie]

Our tax return was not included as income and our trustee is not taking our return (or so we are told).

[NowImDownInIt]

I'll get to keep mine.