need your expert advice

[Mary Irene]

I filed my Ch 13 in March of 2006. It was confirmed in Sept of 2006, but only after I agreed to a 5 year 100% repay. I have a few questions. One claim is for the IRS for about $3500. If I get a return, will they take it or will the IRS wait for the trustee to pay from my payments? My ex-lawyer told me 100% plans don't need to give up their tax return. The letter from the Trustee said I did (although it looked like a form letter). Also, do I still need to send them my tax returns every year with a 100% plan?

[lrprn]

You said 'ex-lawyer'. Did you part ways? Are you represented by another lawyer now?

Unfortunately none of us here are going to be able to give you a 100% reliable answer to your question. There's tremendous variability between districts, local courts, and individual trustees whether the trustee will take all or some of your tax refund, or not ask for it at all.

Even if the trustee does take all or part of your tax refund to give it to your creditors, since you're in a 100% payback plan, it just gets you to the Ch 13 finish line faster.

If you don't have legal representation any longer, check with your trustee to get a 100% reliable answer about your tax refunds.

And remember, you can adjust your withholdings at any time to ensure you don't get a large refund - http://www.irs.gov/pub/irs-pdf/p919.pdf and http://www.irs.gov/individuals/artic...=96196,00.html. That way you keep your money for yourself rather than giving Uncle Sam a free loan for a year.

[Mary Irene]

Yes. My lawyer was upset at me for questioning something and decided that our client attorney relationship was ruined or something like that so she's filing to have herself removed from the case. I do not have any representation now (and the attorney fee has been paid in full). I guess I should call the trustee's office and ask them. I was actually thinking of changing my tax deductions, but I was told by my attorney not to.

[rrockinggramma]

You should also ask the trustee what you do now that you are pro se? Is there a form you need to file to be sure you don't miss something in your case?

[MajorMike]

How the hell can an attorney do that??? Sheeesh, this is what they are paid to do, TAKE OUR QUESTIONS AND DEAL WITH OUR STRESS!!! If they're not up for the fight, then they should of chose a different profession!

[Flamingo]

I filed my Ch 13 in March of 2006. It was confirmed in Sept of 2006, but only after I agreed to a 5 year 100% repay. I have a few questions. One claim is for the IRS for about $3500. If I get a return, will they take it or will the IRS wait for the trustee to pay from my payments? My ex-lawyer told me 100% plans don't need to give up their tax return. The letter from the Trustee said I did (although it looked like a form letter). Also, do I still need to send them my tax returns every year with a 100% plan?

The IRS goes by a tax year basis. Since the amount for a certain tax year(s) is included in your Chapter 13, your future year refunds cannot be touched by the IRS since that amount is included in bankruptcy (i.e., kept from you and applied to that year(s)). That $3500 is broken down over a 5 year payment plan and will be paid to the IRS by your Trustee. You will now be listed with their bankruptcy sector. If you get refunds for the years during your Plan and you are at 100% payback, there is no need to turn those over to your attorney/Trustee unless instructed otherwise for some reason. Always ask before you withhold anything financial (not telling your attorney) such as that during a Chapter 13. Note if you owe taxes for the coming years during your Plan, you will owe them and if they are high, will have to work out a payment plan with the IRS if you cannot pay them in full. It cannot be included in your present Chapter 13. So keep good track of your tax situation during your Plan to avoid owing.