Question about Federal Income tax Return


B

Broke

Just wondering why is it that when you are in Chapter 13 Bankruptcy the
person who is in charge of the Bankruptcy for the court (the trustee is it?)
tells us to sign over our income tax return to them every year even though
the repayment plan he has us on is going to have us in full repayment one
year ahead of time?

We need this tax return (especially this year) for things like home repair
and braces for our kids (our oldest one really needs them) this year we
have an exceptionally large return because of the earned income credit and a
couple of the other allowances the government gave us on last years return
and this check would be just what we need to get us a new roof and the
braces for our oldest child.

Is there any way to get the court or the trustee to make an exception to not
take this or any Federal tax return? After all they already take money out
of the pay check on a monthly basis shouldn't that be enough?

It's not like we chose Bankruptcy to get out of paying our bills, we had to
go this route because I was injured and had no income and it took me so long
to get accepted for SSDI on the first try. You know how bill collectors and
mortgage brokers are, they could care less pay now or we will take your
house. We DO NOT care if your husband almost died and cannot work again pay
me now or else!

So what do you think is there anything we can do any laws on the books or
are we stuck giving our Federal Returns to the court until we are in full
repayment?

Thanks in advance for all your help.
 
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T

Thoth

Broke said:
Just wondering why is it that when you are in Chapter 13 Bankruptcy the
person who is in charge of the Bankruptcy for the court (the trustee is it?)
tells us to sign over our income tax return to them every year even though
the repayment plan he has us on is going to have us in full repayment one
year ahead of time?

We need this tax return (especially this year) for things like home repair
and braces for our kids (our oldest one really needs them) this year we
have an exceptionally large return because of the earned income credit and a
couple of the other allowances the government gave us on last years return
and this check would be just what we need to get us a new roof and the
braces for our oldest child.

Is there any way to get the court or the trustee to make an exception to not
take this or any Federal tax return? After all they already take money out
of the pay check on a monthly basis shouldn't that be enough?

It's not like we chose Bankruptcy to get out of paying our bills, we had to
go this route because I was injured and had no income and it took me so long
to get accepted for SSDI on the first try. You know how bill collectors and
mortgage brokers are, they could care less pay now or we will take your
house. We DO NOT care if your husband almost died and cannot work again pay
me now or else!

So what do you think is there anything we can do any laws on the books or
are we stuck giving our Federal Returns to the court until we are in full
repayment?
I suspect that you've agreed to this as part of your chapter 13 plan.
Depending upon your circumstances you may be able to modify the plan or
convert your case to a chapter 7. Talk to a local bankruptcy attorney about
these options to see if you qualify.
 

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