Can a debtor take my refund?

[Staceyt]

I only had to pledge 3 years of refunds to my case.

This year I was supposed to receive a state refund. However the state kept the refund to pay sales taxes due from an old business. These sales taxes were included in my Chapter 13 case and are still being paid by the trustee!

Shouldn't I be allowed to keep my refund?!

[spidge]

The feds take mine to offset, but not to offset taxes that were included in the plan. You might want to call your attorney for advice on it.

[Staceyt]

I emailed my lawyer a copy of the bill tonight but I'm impatient so figured I would ask you guys.

My case is a little more complicated than typical. It was split from the original case post-divorce. My ex kept the original case and it was dismissed. I have a new case number that is 6 months from discharge but still covers all the original debts. My hope is that they somehow don't realize I am still in an active 13 and I will be allowed to keep the tax refund.

[AngelinaCat]

Well, I am in a state that, thankfully, have a state income tax--YET! But, I'll bet, that if the state income tax people decided you owed the money--it never made it out the door before it was snatched to make up your payment.

That has happened with us with our Federal IRS taxes. Still are paying too. I hope to be able to survive long enough to see the last payment...

Edited to add: State and Federal taxes are not subject to discharge, except under some very specific circumstances.