What to do when the debtor didn't give the Trustee his
Posted: Wed Oct 23, 2013 8:36 am
I should have been clearer. I was suggesting that the attorney review the
confirmation order to make sure tax refund turnover payments are even
required because that requirement is not in the mandatory form plan (at
least I can't find it and would welcome someone pointing it out to me). Of
course, most likely the order does require tax refund turnover since most
Ch. 13 judges give in to the trustees and require that they be turned over,
but sometimes the refunds are not required, such as when your Judge is VZ
and I recall Amrane Cohen does not push for that in his cases (because, as
he expressly says, debtors can easily manipulate that so there is no
refund, which makes him try to get a higher payment up front using the fact
that debtors often claim fewer allowances in their W-4 so as to get refunds
to say that the debtor really can afford a higher payment than the paystubs
would suggest). I should explain that I am fortunate to have confirmed
more chapter 13 plans than I care to count so I have compared the orders
from the different judges before. Now, if the confirmation order does
require the payments, the debtor can modify the plan to extend the term if
there's any time left in the 5 years. Otherwise, the debtor better come up
with the money. Nevertheless, I would contact the trustee's people to ask
if we are ready for discharge first to see if the trustee even cares.
Giovanni Orantes, Esq.
Certified Bankruptcy Specialist*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
Note: The information contained in this e-mail message is confidential
information intended only for the use of the individual or entity named. If
the reader of this message is not the intended recipient or an agent
responsible for delivering it to the intended recipient, you are hereby
notified that any dissemination, distribution or copy of this communication
is strictly prohibited. If you have received this communication in error,
please immediately notify us by telephone or e-mail and delete the original
e-mail at (213) 389-4362 or (888) 619-8222.
IRS Circular 230 Disclosure: In order to comply with requirements imposed
by the Internal Revenue Service, we inform you that any U.S. tax advice
contained in this communication (including any attachments) is not intended
to be used, and cannot be used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting, marketing, or
recommending to another party any transaction or matter addressed herein.
I should have been clearer. I was suggesting that the attorney review the confirmation order to make sure tax refund turnover payments are even required because that requirement is not in the mandatory form plan (at least I can't find it and would welcome someone pointing it out to me). Of course, most likely the order does require tax refund turnover since most Ch. 13 judges give in to the trustees and require that they be turned over, but sometimes the refunds are not required, such as when your Judge is VZ and I recall Amrane Cohen does not push for that in his cases (because, as he expressly says, debtors can easily manipulate that so there is no refund, which makes him try to get a higher payment up front using the fact that debtors often claim fewer allowances in their W-4 so as to get refunds to say that the debtor really can afford a higher payment than the paystubs would suggest). I should explain that I am fortunate to have confirmed more chapter 13 plans than I care to count so I have compared the orders from the different judges before. Now, if the confirmation order does require the payments, the debtor can modify the plan to extend the term if there's any time left in the 5 years. Otherwise, the debtor better come up with the money. Nevertheless, I would contact the trustee's people to ask if we are ready for discharge first to see if the trustee even cares.
-- Giovanni Orantes, Esq.Certified Bankruptcy Specialist* Orantes Law Firm, P.C.3435 Wilshire Blvd. Suite 2920Los Angeles, CA 90010
Tel: (213) 389-4362Fax: (877) 789-5776e-mail: go@gobklaw.comwebsite: www.gobklaw.com*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of CertificationWE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
Note: The information contained in this e-mail message is confidential information intended only for the use of the individual or entity named. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination, distribution or copy of this communication is strictly prohibited. If you have received this communication in error, please immediately notify us by telephone or e-mail and delete the original e-mail IRS Circular 230 Disclosure: In order to comply with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
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