I know there has been a lot of questions and answers regarding whether or not you keep tax returns in a Chapter 13. We have filed; however, we have not finalized all of the paperwork as of yet (barely made deadline prior to new laws).From what our attorney estimated in our initial consultation, we have approximately $6,000 in assets that are NOT exempt. He estimated we have about $281 in disposable income to be paid towards the BK. He stated that because of the 36 month minimum, we will actually have to pay more than the $6,000 in assets resulting in us paying $10,116, $4,116 more than our asset value.
From what I can tell by the state rules (Idaho) we are required to pay an amount equal to or more than non-exempt assets. Now I just got a letter stating that we also have to surrend all tax returns (usually $1,500 to $2,500) Federal and State combined annually. Just from guessing at figures over the 3 years of BK, including possible tax returns we will end up paying about $15,000 that will end up being 40-45% of our actual unsecured debt that we are hoping to discharge.
1. Even though we are going to be paying more than our non-exempt value anyway, they can still take our tax returns towards the BK?
2. We probably won't have as much of a refund this year, as we lost a lot of our 'write-offs'. Would you advise us to change withholding amounts as soon as possible so as to lose less money through our tax returns and gain more money currently?
Thanks for any advice and/or suggestions. Sorry it got so long.
Paula
Filed 10/14/05 CH 13.
Meeting of Creditors 12/5/05
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