Changing Withholdings

[spearmint]

So I do not receive a tax refund (which the trustee might take) should I increase my withholdings before or after I file for Chapter 13?

[lrprn]

So I do not receive a tax refund (which the trustee might take) should I increase my withholdings before or after I file for Chapter 13?

You can increase your withholdings whenever you want. Some employers may restrict it to a specified timeframe (like once a quarter), but for the most part, you can do it anytime.

Since using the government as a savings account with no interest makes no sense, I would start your adjustments now. Here's a link to the IRS Withholdings calculator - one for printing at http://www.irs.gov/pub/irs-pdf/p919.pdf and an interactive one online at http://www.irs.gov/individuals/artic...=96196,00.html

[spearmint]

You can increase your withholdings whenever you want. Some employers may restrict it to a specified timeframe (like once a quarter), but for the most part, you can do it anytime.

Since using the government as a savings account with no interest makes no sense, I would start your adjustments now. Here's a link to the IRS Withholdings calculator - one for printing at http://www.irs.gov/pub/irs-pdf/p919.pdf and an interactive one online at http://www.irs.gov/individuals/artic...=96196,00.html

Thank you. This is very helpful.

[spearmint]

You can increase your withholdings whenever you want. Some employers may restrict it to a specified timeframe (like once a quarter), but for the most part, you can do it anytime.

Since using the government as a savings account with no interest makes no sense, I would start your adjustments now. Here's a link to the IRS Withholdings calculator - one for printing at http://www.irs.gov/pub/irs-pdf/p919.pdf and an interactive one online at http://www.irs.gov/individuals/artic...=96196,00.html

If I start it now, when I file BK13 in a few weeks, won't it increase the income that the courts see (and therefore higher repayment anyway)?

[mgmadara]

If I start it now, when I file BK13 in a few weeks, won't it increase the income that the courts see (and therefore higher repayment anyway)?

My best friend's trustee forced her to change hers specifically so she would have more disposable income to payback.

[spearmint]

It sounds like a catch 22 then. If I change it now then I have more disposable income to pay creditors and if I don't change it and get a tax refund, the trustee gets it for the creditors anyway.

What I'm doing is trying to figure out a way I can have more money for living during the 5 years as I am going to be financially strapped.

[gettingby2008]

I changed mine to M-0 a few months before we were going to file, after confirmation I will change withholdings to M-4 so that I have a little more $$ each paychek. Attorney said to wait untill after confirmation so that no questions would come up.

[EricaCallaha]

Leave it the way it is until you file and then change it. We changed it about a week after we filed and it wasn't an issue with the trustee.

I guess it depends on your trustee. Ask your attorney as to the best timing.