Tax refunds while in Chapter 13

[roxiewg]

Has anyone received any of your tax refunds while in Chapter 13? I am in the state of Texas.

[tcauvet]

You should check with your trustee/attorney, but I am required to send any tax refunds to the trustee. Although, I did get to keep the stimulus check last year.

[liz417]

We were told that we had to hand over our Tax Refunds every year We are in California.

[lrprn]

Whether all or a portion of your tax refunds will be taken by your Ch 13 trustee depends on the customs in your local bk court. Some trustees take the whole thing no matter how small it is, others set a limit to what you can keep (our trustee takes anything over $2,000), and others don't care and allow the filers to keep the entire return.

You'll have to ask your lawyer what your trustee does.

[roxiewg]

Thank all of you for your feedback. I mean we are in bankruptcy and we have no money, you would think in every state they thought this way and give us the refund as we surely need it in a bankruptcy situation.

[helpless]

My husband filed 13 back in 2005, we were done in October and discharged in November. We got our tax refunds every year, even though we were paying back the IRS $1300. Well, I just got a letter in the mail for me from the IRS stating that I owe over $500 in back taxes, penalties and late fees. My husband was set at paying back 23%, so that is all that they got on the penalties and interest and now they are coming after me. When I asked why they didn't contact me before or take it out of the refunds for the last three years, they said that they couldn't because I was under bk protection. I said I was never under bk protection, just my husband. I would never had let the late fees and penalties add up, which is $350 of the $500. Anyway, I have to pay them and then file for a return of the penalties because they did not notify me. Yeah right, I will never see any of that $500 again.

[optimistic1]

My husband filed 13 back in 2005, we were done in October and discharged in November. We got our tax refunds every year, even though we were paying back the IRS $1300. Well, I just got a letter in the mail for me from the IRS stating that I owe over $500 in back taxes, penalties and late fees. My husband was set at paying back 23%, so that is all that they got on the penalties and interest and now they are coming after me. When I asked why they didn't contact me before or take it out of the refunds for the last three years, they said that they couldn't because I was under bk protection. I said I was never under bk protection, just my husband. I would never had let the late fees and penalties add up, which is $350 of the $500. Anyway, I have to pay them and then file for a return of the penalties because they did not notify me. Yeah right, I will never see any of that $500 again.

Sounds like you live in a community property state or , im pretty sure that when one spouse files a Ch.13, it does protect the non filing spouse, regardless if they filed joint.