Hello,
In Ohio if you file chapter 13 the Trustee will not touch your Federal or State tax refunds. Unless you owe Federal and State tax debt. In that case the Federal and State Government will take what ever you owe them.
Happy Holidays
I would disagree with the above.
First, the State makes no difference, Bankruptcy las are Federal, handled by a Federal District BK Court. (Yes, some of these courts have certain allowances, that basically try to conform the handling to the convesntions of the area they work in).
If the above were true, you could simply have 100% (or a high amount) of your earnings withheld, and hence have a large refund due...and say none of it is applicable to pay your debts? Nope.
Tax refunds are from excess amounts you essentially had put in to a savings account with the Gov't with your name on it. Have the right amount withheld, by properly completing and filing your W-4 and you won't have a refund...and that extra money in your paycheck could be used to pay the debts you owe. The trustee won't hold back, in fact will give prioeity to paying, any tax you owe - but won't have you benefit by overpaying and asking for a refund.
James
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I disagree with James. Why is it that all persons assume an income tax refund is due to an overpayment of federal taxes? I work for the state and have a set amount mandated to come out of my paycheck from PERS (public employee retirement system) which affects my adjusted gross, I pay nothing into Federal tax but I earn a tax credit for two children and being a full time student. In any case, a refund does not always indicate an overpayment...but NO, the IRS does not turn your refund over to the Chapter 13 in Ohio unless you owe back taxes.
You will need permission from the trustee before doing anything financial while in chapter 13 bankruptcy. You will have already signed paperwork agreeing to full disclosure with your trustee when you filed.
You can get a Chapter 13 bankruptcy dismissal by asking your lawyer to ask the trustee for a dismissal. If you are having trouble making the payments, you can ask for you bankruptcy to be modified.
Contact the trustee who is in charge of the case.
While participating in a Chapter 13 bankruptcy, no major financial transactions are allowed w/o the permisson of the bankruptcy trustee.
If you are in a Chapter 13, then you must get approval from the trustee if you wish to incur more debt.
The chapter 13 petitioner/participant must receive the approval of the bankruptcy trustee for all major financial transactions.
60days
Money for your plan payment, tax refunds.
Chapter 13 trustee is an entity, generally an individual, with the responsibility of managing a chapter 13 bankruptcy estate. The Chapter 13 receives the debtor's monthly payments and then distributes those funds proportionally to the debtor's creditors.
If your bankruptcy was "discharged" in 2000, then yes. Discharged means it is done! If you are still in a chapter 13 bankruptcy, still paying the trustee--then no. If the trustee finds out about the CD, it will cause lot of problems.
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
If it is chapter 7 and has not been discharged then, no. If it is a chapter 13 then the bankruptcy filer would need the permissin of the trustee to make any major financial transactions.