Filed mid-Jan, but atty didn't mention how this would work. We owe back taxes (5k) for 2007 and have been paying $88/mo through direct withdrawal. I was under the impression that any refund was held by the IRS to pay that amount down, so I wasn't overly concerned that trustee would/could get it. But reading some recent posts has me confused. I will call atty this AM, but was wondering what your experiences were. Thanks!
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1/15/10 Filed ch7 2/18/10 314 meeting
2/22/10 Report of No Distribution
4/20/10 Discharged 5/20/10 Closed! -
I was told any tax refunds will go straight to the IRS...as they are a priority.Chapter 13 Convert to 7 ---- 10/7/09 - loss of income
341 Meeting ----12/03/09
Last day for objections --- 2/1/10
Discharged ---- 02/3/10 Closed ---- 2/3/10 -
The irs takes what you owe them out of a tax refund first, and THEN releases the remainder to you. Once you get the remainder, you then pay the trustee. (if the trustee has requested your tax refund).You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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Either way, the tax refund is going to pay the IRS, unless you have priority claims that exceed the priority of the IRS's claim.
Because of the automatic stay, the IRS should NOT intercept the refund if it is still in force at the time you file your 2009 tax return. But, since the IRS has a priority claim, the trustee would simply use those funds to pay the IRS debt anyway.
I wouldn't waste a phone call with your attorney over this.
Also, keep making payments to the IRS. Again, because of the automatic stay, the IRS may stop the auto withdrawal.Last edited by HHM; 02-01-2010, 08:07 AM.Comment
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I was concerned about this part, but havent received anything from the IRS yet to indicate that they will not deduct automatically from my checking acct. (BOA has already turned off our 2nd mortgage info online.) The bk appeared on the credit report as of 1/22, so in government time that is not very long...Originally posted by HHM View Post1/15/10 Filed ch7 2/18/10 314 meeting
2/22/10 Report of No Distribution
4/20/10 Discharged 5/20/10 Closed!Comment
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Our refund this year will be small, maybe $1,500 so there wont be any left over to go to the trustee. But, it will make a dent in the 5k balance. I just want to make sure that if it is going to go somewhere other than us, that it goes to the IRS to reduce that debt.Originally posted by backtoschool View Post1/15/10 Filed ch7 2/18/10 314 meeting
2/22/10 Report of No Distribution
4/20/10 Discharged 5/20/10 Closed!Comment
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I believe the IRS has more power than the US President. They will claim priority payment over any other entity.Retained Lawyer: 04/2009 Filed: 09/2009 341 Meeting: 10/2009 Discharged: 12/2009 Asset: 05/2010 made asset Closed: 07/2013 after 47 long monthsComment
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