Has anyone specifically asked their lawyers yet??

[aces67]

I'm hoping the trustee won't take it. We'd like to do some home improvements with it.

[MotherTrucker]

I've asked my lawyer via email and haven't received a response (big surprise). My trustee (Western District - Austin Division - Texas) requires ALL tax refunds to be sent to her. In this district it is treated as disposable income, so it goes to the creditors. I am expecting the same thing to be said about the stimulus payments. I am going by my attorney's office today to drop off my tax return, so I'll see if I can get a word with him. I guess once they get paid, they don't have time for ya! If I find out anything, I'll post it.

Does anyone remember the stimulus payments sent out in 2000? We owed the IRS then and they kept the $, applied it to our back taxes and sent us a letter. If that happens this time, what's due to the IRS won't be offset, just more $ will go to our unsecured creditors, if I'm reading my plan documents correctly.

My gut feeliing is not to get my hopes up about this $. I expect I'll have to turn it over.

[MotherTrucker]

Well I talked to my attorney today. Well, more like cornered him in his office after hours. I was dropping off my tax return and didn't expect him to be there, but he was! Lucky him!
Anyway, he said that the attorneys and trustees for our district (Western District Texas) had a meeting and the trustees had said they would not take the stimulus payments. However, there was also an IRS attorney present, and he said he didn't know what the IRS policy would be for debtors with back taxes.

Just passing on the info...

[SwimminUpStream]

I too have been told by my attorney that as long as you did not owe IRS back taxes, that the Trustees here in Florida would not touch the rebate check.

[krielly]

However, there was also an IRS attorney present, and he said he didn't know what the IRS policy would be for debtors with back taxes.

Just passing on the info...

This is where I posted what I read yesterday on the IRS Website:

http://www.bkforum.com/showthread.php?t=22601

K

[krielly]

The trustee may not take it though, just the IRS. However, I believe if the taxes you owe the IRS are in your BK, then they cannot touch that money because it is part of the BK estate.

I think you are correct. At least in our case, the IRS is being paid through the plan, and haven't touched any of our refunds since we have been in the plan.

[MajorMike]

Right, and that's what my attorney said too. Now I'm getting audited so if I settle it now, that $600x2 will be taken....but it will knock off that amount from what we owe..
The thing that is confusing is that the amount we're getting audited for is part of the 2005 tax year which was prior to us filing. I'm so confused about that matter.

[MotherTrucker]

I think you are correct. At least in our case, the IRS is being paid through the plan, and haven't touched any of our refunds since we have been in the plan.

The IRS is being paid through our plan as well. What about your trustee? He/she hasn't required that your IRS refunds be sent to him/her? Mine does. I guess it's just another example of the many shades of gray that comprise Ch. 13 BK...

[MajorMike]

Our trustee doesn't ask for our refunds either, but we're making sure we don't get one anyway. We owe the IRS $650 this year so even if he wanted to , he couldn take it. We have $1700 coming back from State...so we'll pay federal with that.

[HHM]

We are trying to consolidate all posts on the rebate topic.

Please post any future comments and questions to this thread

http://www.bkforum.com/showthread.php?t=22621

Thank you.