I filed Chapter 13 in 09/09, will the trustee take my tax refund?

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I filed Chapter 13 in 09/09, will the trustee take my tax refund?

Asked on January 12, 2011 under Bankruptcy Law, Alabama

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Generally speaking, yes, your trustee can take your tax refund.  Tax return refunds in a Chapter 13 are considered to be "property of the estate" so the trustee can take the refund and apply it to the repayment plan that you have created.  I am not a bankruptcy expert and I have read that some of the bankruptcy courts believe that doing this is improper, but it is done every day.  Some trustees take half.  Different trustees around the country handle tax returns differently.  So I think that the best thing that you can do is to speak with your trustee and see how he or she handles this issue.  Good luck. 


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