Can I keep state and federal tax refunds under chapter 13? - Bankruptcy Law Questions and Answers- LawQA.com

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Can I keep state and federal tax refunds under chapter 13?

Answer By Katie M. Stone
The Law Offices of Katie M. Stone
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You must turn a copy of your tax return and the check from the IRS (you must request a check and not direct deposit) over to your chapter 13 trustee each year you are in your bankruptcy. They will send you back any portion that is exempt. If you are paying 100% of your chapter 13 plan, you can keep your return. I hope you found this answer useful.

Answer Applies to: Florida
Replied: 2/17/2014

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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The answer to your question depends entirely on your Chapter 13 plan, as proposed and confirmed. Some debts can keep tax refunds under certain circumstances, in whole or in part, and others cannot.

Answer Applies to: Indiana
Replied: 2/11/2014


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Depends upon your plan, but usually you cannot.

Answer Applies to: Nevada
Replied: 2/4/2014

Answer By A. J. Mitchell
Law Offices of A. J. Mitchell, LLC
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You are required to forward all Federal tax refunds to the Chapter 13 Trustee during the period of your bankruptcy. If you should have a compelling need to use or keep any of your tax refunds, you must file a Motion to Retain Funds with the Bankruptcy Court and attend a hearing relative to same.

Answer Applies to: Georgia
Replied: 2/4/2014

Stuart P Gelberg
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That is a matter of local practice. Generally no unless you're paying unsecured creditors in full.

Answer Applies to: New York
Replied: 2/3/2014

GARCIA & GONZALES, P.C.
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Yes and no. If you filed your BK earlier this year and received your refund after you filed, your attorney will have to reconcile this in the Chapter 13 plan analysis (you end up paying a portion of the refund you are not allowed to keep to the Chapter 13 Trustee for the benefit of your creditors). Earned Income Credit and Child Tax Credit can not be touched by the Trustee, so these amounts you can keep with no adverse affect.

Answer Applies to: Colorado
Replied: 2/3/2014

Answer By Marjorie Guymon
Goldsmith & Guymon
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No. They are contributed to your plan, in addition to your monthly payments.

Answer Applies to: Nevada
Replied: 2/3/2014

Answer By Jane Downey
Moore Taylor Law Firm, P.A.
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Usually you can unless the trustee requests them. Obviously you aren't withholding enough if you are getting a refund.

Answer Applies to: South Carolina
Replied: 2/3/2014

Answer By Kirby G. Moss

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Take a look at your Plan as it should state specifically whether you can or not. Basically, if you have committed to paying 100% of unsecured claims filed in your bankruptcy, you can likely keep refunds. If you haven't so committed, you can't. Check with your attorney if questions.

Answer Applies to: Indiana
Replied: 2/3/2014

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Most likely not, especially if it a confirmed case. Look at the confirmation order. If you are going to file now, get the refund first.

Answer Applies to: California
Replied: 2/3/2014

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