Posted by: admin in chapter 13 banruptcy attorney on
pg asked:
My husband and I filed Chapter 13 in 2006. Prior to that the attorney asked us to check if we would have a tax refund coming.
My husband found out that we would have a large tax refund coming. The attorney told us to adjust our tax allowances so that we would not have any refund. The reason was that any refund would go to the bankruptcy court. Our bankruptcy payments are based on the higher allowances. I was doing our federal tax filing last night when I realized that we now owe the government over $3000 in taxes because not enough money was taken out of my husband’s paychecks. We are barely making ends meet now. There is no way that we’ll be able to afford another $400 a month taken out for taxes. They are to base our payments with disposible income. I believe that paying our taxes is not considered disposible. Should I contact my attorney and ask for the payments to be readjusted? We are paying over $350 a week now. Last year, we paid over $18000 to the court.
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My husband and I filed Chapter 13 in 2006. Prior to that the attorney asked us to check if we would have a tax refund coming.
My husband found out that we would have a large tax refund coming. The attorney told us to adjust our tax allowances so that we would not have any refund. The reason was that any refund would go to the bankruptcy court. Our bankruptcy payments are based on the higher allowances. I was doing our federal tax filing last night when I realized that we now owe the government over $3000 in taxes because not enough money was taken out of my husband’s paychecks. We are barely making ends meet now. There is no way that we’ll be able to afford another $400 a month taken out for taxes. They are to base our payments with disposible income. I believe that paying our taxes is not considered disposible. Should I contact my attorney and ask for the payments to be readjusted? We are paying over $350 a week now. Last year, we paid over $18000 to the court.
You really should contact the attorney. The last thing you want to do is fall behind with your payments to the Trustee. The attorney may be able to have your plan amended. Always communicate your concerns, your attorney can’t help if they don’t know what’s going on.