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  1. #1

    Default What Happens to a Tax Refund in Chapter 13, With IRS Debt

    My question involves bankruptcy in the state of: arkansas

    i was told buy my bankruptcy attorney that the irs couldn't take my refund while i am under a chapter 13.

    if i owe the irs and they cant take it, where would my refund go, towards my chapter 13?


  2. #2
    Join Date
    Apr 2009
    Somewhere near Canada

    Default Re: Refund Owing IRS Under Ch. 13

    The trustee, most likely. careful that the IRS doesn't pull an "offset" on you. read more here

    Have another chat with your attorney.

  3. #3

    Default Re: Refund Owing IRS Under Ch. 13

    I filed a Chapter 13 in October 2009. My amount owed was $10,270.00. I was told I had to sign a paper that the IRS would send my money to the trustee. I filed in February 2010. My monies were sent to the trustee in or around April 2010 in the amount of $6600.00. My plan was to pay $305.00 for five years. In November 2010 I received a letter from the Trustee that read balance on hand $270.00. In December 2010 I received a letter that read balance on hand $0.00. In January I received a letter that read if I file my taxes and the money comes to me, I have to give it to the Trustree. I called the trustee indicating that my monies from the IRS had been sent to them and I had a letter that read balance on hand "$0.00." In short...the woman said I owed $3860 and when I asked about my tax monies, she said she didn't know anything about that. I went online to the public website and observed that the monies were never applied. However; in February 2011 I received a letter that read "Motion to Dismiss" for non payment of $1200.00 When I looked at the attachment, the $6600 was now reflected on my account thus they say I only paid around $9000.00. My attorney(s) whom I've spoke to several since I retained this law firm has told me many different things. Nothing is ever the same. When I signed up I was told the tax money would go to the trustee but I could write a letter two weeks after I received it and then I could get the money back. A head paralegal said, "That money is hers..."referring to the Trustee. Last year an attorney said, if I paid it off early I wouldn't owe anything." Two weeks ago the attorney said I had to pay $700 or my case would be dismissed; or I could let it get dismissed and then file my taxes; I should lower my tax withholding and file; not file my taxes; file a chapter 7; well we don't advise you to file a chapter 7 because you don't owe that much; you shouldn't have paid the large amount of money; you need to stay in the plan for at least 19 more months before your case can be dismissed. I am really having a comprehension problem which mainly is because I have been told so many different things. I do not understand how or why I would be told so many different things. In 14 months I paid $4270.00. Out of fear I paid them all that I could come up with which was $610.00 at which I was informed that the head paralegal would call the trustee on the Thursday that I brought the money in and the court case would be dismissed. However; she left early that Thursday; didn't come in Friday or Monday. After calling several times someone called me Monday evening and said, "You don't have to go to the hearing. An attorney will go for you. You will probably be on strict compliance." I asked if I could go anyway and she said you don't need too but told me the room that the case would be in. I went to the hearing. I asked the attorney if I could talk to the judge because I don't owe anything else. The attorney said, "She wouldn't entertain this over taxes. Make an appointment to see me on Thursday." This experience is very frustrating because I can't seem to get the truth opposed to being told many different things. The trustee has my taxes; I made all of my payments; I've overpaid through no fault of my own but I still have to pay $305.00 a month for at least another 19 months. I know this is a lot but if someone would offer some advice or explain what is happening or even what other rights I may have...I'd be most greatful. Thank you for your time.

  4. #4

    Default Re: Refund Owing IRS Under Ch. 13

    i got my refund, as my attorney told me i would. i think it had to be under a certain amount, which was 1500.00, which it was.

    forgot about this thread

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