tax refunds and ch 13

[hopeful316]

When you get a tax refund from the IRS every year, is it pretty much gone to the trustee until the discharge of say 5 years or can you still get it every year with some exceptions?

[lrprn]

Whether you get a refund or not depends completely on your trustee. Some take anything you get, some only take whatever is above a stated amount, and some couldn't care less and allow you to keep the refund no matter how big it is. Only experienced bk attorneys in your area will know what you can expect with your trustee. Good luck!

[detra]

my understanding it depends on what state you live in.

[CCB35]

In Northeast Tn,we got to keep anything under $1500.anything over that went to the plan,plan on an extra month as well due to it going through the bk department of the irs and then to the trustee.I am soo glad i dont have to put up with that anymore

[booradley61]

Every district is different. For starters, look at your confirmation documents. If it says nothing about it, ask your attorney if the trustee will be asking for your tax refunds. My confirmation said nothing about tax refunds, so I asked my attorney the first year and was told that they never go after those and I could keep them, which I did. But make sure you know whether your trustee wants them or not. You don't want your case dismissed because you were supposed to surrender your tax refunds and didn't. Nothing like knowing for sure you're doing things right - you sleep better at night.

[nsupanda]

My attorney told me that our Trustee takes the refunds from everyone who is not at 100% payback. He'll even take it if you're at 99%. However, my step-father (who is also in Ch. 13, not at 100%) sent a request to the same Trustee to keep his refund due to needed home repairs and the Trustee allowed him to keep it. Every Trustee is different though.