Do I have to give the trustee my tax refund? How? 11 Answers as of July 28, 2015

If you have filed for a chapter 13 bankruptcy, do you have to give a tax refund to the trustee?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, look at the order of confirmation. You will see that condition there. The trustee is entitled to your "disposable income". The tax refund is "disposable income". If you have some specific need for the funds you could file a motion and seek court permission to use them.
Answer Applies to: California
Replied: 7/28/2015
Ronald K. Nims LLC | Ronald K. Nims
You have to report the amount of your tax refund to the trustee, if it's large you'll probably have to turn it over to the trustee. Your lawyer should be advising you on how to avoid or minimize tax refunds. Way too many lawyers dabble in bankruptcy that have no idea what they're downing. Find a bankruptcy lawyer that's also a CPA.
Answer Applies to: Ohio
Replied: 7/28/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Different federal districts, with different Standing Trustees, have different rules about income tax refunds. Some are not interested, many do want some or all of it. What did you and your lawyer put into your Ch. 13 Plan? In a district where the Trustees generally want to take the refunds, it could make sense to provide in the Plan that, say, one-half of such refunds go to the Trustee. If nothing is said in the Plan, the Trustee can make any size claim he or she wants. You and your lawyer would probably then want to go to court and contest the T'ee's demand for all of it by offering some of it. (The rest you should be allowed to keep as an incentive to increase your earnings.)
Answer Applies to: Wisconsin
Replied: 7/28/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, unless you have a 100% payment plan.
Answer Applies to: New York
Replied: 7/28/2015
Polsinelli Shughart PC | William B. Prugh
This is a question to ask the Trustee or attorney for the estate or your tax preparer. You may have to, but there are details & excepts to review first. Good luck.
Answer Applies to: Missouri
Replied: 7/28/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Sure, it ought to be one of the terms in your plan. If you had less money withheld from your paycheck, you would have had more money to pay in your monthly installments to the plan.
    Answer Applies to: Nevada
    Replied: 7/28/2015
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Yes and no. You don't actually turn the refund over to them (generally), but you make a provision for the refund in the Chapter 13 Plan.
    Answer Applies to: Colorado
    Replied: 7/28/2015
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    If you filed a chapter 13 case then hopefully you also have a chapter 13 lawyer. You must ask your lawyer this question since the answer depends upon when your case was filed and what the terms of your plan include.
    Answer Applies to: Colorado
    Replied: 7/28/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Yes, that is a standard requirement in chapter 13. You have to submit copies of your tax returns to the trustee every year and make a separate payment for the refunds.
    Answer Applies to: Oregon
    Replied: 7/28/2015
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Depends on your trustee. In the southern district of florid you will not have your return taken.
    Answer Applies to: Florida
    Replied: 7/28/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes if your plan says so but you may be able to change your plan.
    Answer Applies to: Michigan
    Replied: 7/28/2015
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