Tax Refunds Can�t Be Intercepted Anymore by Michigan Chapter 13 Trustees, Federal Cou

[keepinitreal]

[justbroke]

Cool.

[ccfriend]

I am from the Eastern District of MI and I got my refund deposited into my bank account and then I had to pay some of it to the trustee. Mine was never intercepted.

[Flamingo]

See the second paragraph in the original posting. It seems debtors now will have to incur additional attorney's fees to file any required motions to keep a tax refund. We incurred $400 additional in fees to file a Motion in our Chapter 13.

[spearmint]

Does this mean it would be advisable to INCREASE withholdings?

[justbroke]

Does this mean it would be advisable to INCREASE withholdings?

Absolutely not. This has nothing to do with how much you need to pay into your plan. This has to do with whether the Trustee can have any refunds "diverted" directly to the Trustee. Does not modify the fact that you may have to pay the Trustee.

[spearmint]

Ohh I see. So even though the trustee can no longer grab refunds before you receive them, it doesn't mean the trustee will not get them somehow then.

[tigergem]

Right, spearmint, that is the way I see it, too. I had to include language in my Confirmation Order that says I will turn over to my Trustee any Federal Income Tax Refunds received within so many days after I receive them. But for the last many years, I did whatever I could to break close to even on that front anyway. I never believed in letting the IRS be my savings plan without paying me interest. So I typically either owed less than $100 or was getting less than $100 back all the time.