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Is it possible to decrease Chapter 13 time frame?

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  • shipo
    replied
    Originally posted by sophieanne View Post
    shipo - in your case I understand the situation and I’m glad your attorney was looking out for you. In Carmella’s situation she’s in a 100% plan and unless her confirmation says she has to turn over tax returns...I don’t believe her attorney has the right to ask for them.
    Agreed.

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  • sophieanne
    replied
    shipo - in your case I understand the situation and I’m glad your attorney was looking out for you. In Carmella’s situation she’s in a 100% plan and unless her confirmation says she has to turn over tax returns...I don’t believe her attorney has the right to ask for them.

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  • shipo
    replied
    Originally posted by sophieanne View Post
    Carmella - unless your confirmation order said you had to submit tax returns, you shouldn’t have to. The trustee administers your case, not your lawyer. I personally would ask why he wants them if it’s not been required by the trustee.
    In my case, my confirmation order said I had to submit tax returns to the Trustee each year, that said, my attorney expressly forbade me from sending the returns directly to him, instead, she asked me to send a copy of my return to her and she would then forward it on to the trustee. In this way she was able to review the return and lobby on my behalf during my third and fifth years, where my return was somewhat over the $1,250 threshold; in both of those years she was able to convince the Trustee I should be allowed to keep the excess. The good news is she prevailed, however, had I sent the return directly to the Trustee, I would most assuredly have been required to pay the excess for those two years as well as what I paid in my fourth year.

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  • sophieanne
    replied
    Carmella - unless your confirmation order said you had to submit tax returns, you shouldn’t have to. The trustee administers your case, not your lawyer. I personally would ask why he wants them if it’s not been required by the trustee.

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  • shipo
    replied
    Originally posted by Carmella View Post
    We are not required to submit income tax forms to the trustee. However our attorney wants us to submit to him. I never asked why, but maybe he keeps an eye on the income to be proactive if there's an increase??? Or maybe it's because we are in 100% plan that we don't have to submit to trustee?
    Could very well be; my payback was rather south of 100% and as such, my Trustee wanted to keep tabs on my income and give my creditors as much as possible. As a result, he was able to grab all but $1,250 of a rather large tax return during my 4th year.

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  • Carmella
    replied
    We are not required to submit income tax forms to the trustee. However our attorney wants us to submit to him. I never asked why, but maybe he keeps an eye on the income to be proactive if there's an increase??? Or maybe it's because we are in 100% plan that we don't have to submit to trustee?

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  • muneco
    replied
    justbroke Yes, I found it odd to require the I/J every year as the tax returns would have shown any rise in income.

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  • justbroke
    replied
    Very interesting muneco . I say it's interesting because I never would have thought that a Chapter 13 Trustee could ask for a new Schedule I/J every year. In Florida, we do send in the federal tax returns annually, but never had to redo a Schedule I/J unless seeking a motion to modify.

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  • muneco
    replied
    justbroke No, we did not have a business. In fact, my wife and I were both retired at the time of filing and our only income was my pension and my wife's social security when our case was filed. Our income was well over the state's median income. I believe all chapter 13 filers in our district are required to submit I/J and federal tax returns annually.

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  • justbroke
    replied
    muneco were you a sole proprietor of a business? Otherwise I don't see why the Trustee would want an I/J each year. Or, was there some other special considerations, such as irregular pay (commission-based income)?

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  • muneco
    replied
    shipo I am not sure if it is typical to have to submit those items. I believe it pretty rare for a trustee to require it. Our trustee would send a letter 45 days before the anniversary of the case filing date and stated if the documents were not received by the court on time our case would be subject to dismissal. She was a tough trustee. One year we submitted our annual tax return to our attorney to submit to the trustee. The attorney's staff dropped the ball and missed the deadline to submit the return. One week after the deadline was missed we received a letter of intent to dismiss our case. Fortunately, the attorney was able to submit the return and the trustee withdrew the dismissal.
    Last edited by muneco; 10-13-2020, 07:29 PM.

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  • shipo
    replied
    Originally posted by muneco View Post
    We were required to submit annual tax returns to the trustee and submit schedules I and J to the court. Schedules I and J list income and expenses. For all annual increases in income we were able to offset them by increasing our expenses, usually in the home maintenance and food categories.
    Interesting, I was never asked to resubmit those schedules; is that something which is considered typical?

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  • muneco
    replied
    We were required to submit annual tax returns to the trustee and submit schedules I and J to the court. Schedules I and J list income and expenses. For all annual increases in income we were able to offset them by increasing our expenses, usually in the home maintenance and food categories.

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  • shipo
    replied
    So here's the deal, if your income rises enough, the Trustee will take note when he/she looks at your income taxes and most likely, bump what you pay per month and also bump how much money your creditors will get. I believe the figure I've seen around here is an increase in income of at least 10% is the threshold before most (all?) trustees take action and ask for more money (kind of makes me glad the promotion I got in my 4th year only netted me 9% more income).

    To justbroke's comments above, the only way you can shorten the time of your Chapter 13 is if your increase is so high you can pay off ALL of the debt you owe before the term is up.

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  • serenity2022
    replied
    justbroke Thank you very much. The plan is only 35% and halfway through the plan. The income increase hasn’t happened yet. But if it does, it sounds like I will need to ride out the remaking years and look forward to a little extra income when it’s complete.

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