Quote Quoting grandmadebb
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The trustee wants to take the refund and apply to unsecured debts. Not pay it into the plan. Thats the part I don't understand, if b/k is suppose to help you rebuild. Most of our debt was back taxes owed, so that is why I thought I could tell the IRS to take the refund and apply towards our taxes owed. Thanks for your reply. I guess we thought that since we filed before the reform in Oct. 2005, this wouldn't affect us.
Oh right, the IRS debt is priority, not unsecured (or maybe both - look at the proof of claim). But something you said cannot be true - I am pretty sure that the trustee must pay the money into the plan. How would the trustee pay the unsecured debts otherwise - sign the check over to them? I think what you mean is that the tax refund would be on top of the secured and priority debts under the plan. Also, very important - rule #1 is to look at the plan. Does it say what happens to tax-refunds? That would be controlling. I don't think the pre/post 2005 issue changes this situation.