Central District Consumer Bankruptcy Attorney's Association

Nick,
My guess is that your client will be well advised tofocus his efforts on setting exemptions to prevent a tax refund in subsequent tax returns.
Given the BAP case Jon just posted and1306generally, I doubt
Peter
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Saturday, March 15, 2014 3:18 PM, Nicholas Gebelt wrote:
Dear Larry,
I appreciate the thought.
However, if I file a motion to modify the plan, I will either have to provide the service gratis, something I dont want to do, or charge the client for the work. I can, of course, get paid through the plan, which will require an increase in plan payments because my client has a lot of nonexempt real estate equity and available disposable income, or by charging him directly and filing a fee application to approve the payment.to keep the tax refunds. This will be a very tough sell.
All the best,
Nick
Nicholas Gebelt
Nicholas Gebelt, Ph.D., J.D.
Attorney at Law
Certified Bankruptcy Law Specialist
Law Offices of Nicholas Gebelt
15150 Hornell Street
Whittier, CA 90604
Phone: 562.777.9159
FAX: 562.946.1365
Email: ngebelt@goodbye2debt.com; ngebelt@gebeltlaw.com
Web: www.goodbye2debt.com
Blog: www.southerncaliforniabankruptcylawblog.com/
Important notice required by 11 U.S.C. 528:We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Larry Simons
Sent: Saturday, March 15, 2014 3:03 PM
To:
Subject: Re: [cdcbaa] Chapter 13 trustee requires tax refunds in a 100% plan
File a motion to modify that term of the plan
Sent from my iPhone
On Mar 15, 2014, at 2:55 PM, "Nicholas Gebelt" wrote:
>Dear Christine,
>
>Thank you for your input.
>
>The oddity here is that the debtors I, J difference disposable income (the value most commonly used in calculating plan payments) exceeds the plan payment size necessary for a 100% plan, meaning that the debtor does not have to devote 100% of his disposable income to plan payments; and the Trustee did not insist that he had to. But the Trustee now requires that he contribute his tax refunds to the plan because the refunds are part of projected disposable income within the meaning of 1325(b)(1)(B).>
>All the best,
>
>Nick
>
>Nicholas Gebelt
>
>Nicholas Gebelt, Ph.D., J.D.
>Attorney at Law
>Certified Bankruptcy Law Specialist
>
>
>
>Law Offices of Nicholas Gebelt
>15150 Hornell Street
>Whittier, CA 90604
>Phone: 562.777.9159
>FAX: 562.946.1365
>Email: ngebelt@goodbye2debt.com; ngebelt@gebeltlaw.com
>Web: www.goodbye2debt.com
>Blog: www.southerncaliforniabankruptcylawblog.com/
>
>Important notice required by 11 U.S.C. 528:We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
>
>Confidentiality Note: This e-mail is intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential, or otherwise protected from disclosure. Dissemination, distribution, or copying of this e-mail or the information herein by anyone other than the intended recipient, or an employee or agent responsible for delivering the message to the intended recipient, is prohibited. at 562.777.9159 or e-mail info@gebeltlaw.com and destroy the original message and all copies.
>
>Representation Note: If you have not signed a contract of representation, the Law Offices of Nicholas Gebelt do not represent you, and this email does not contain any legal advice for you.
>
>IRS Circular 230 Disclosure: In order to comply with the 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. >
>From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Christine Wilton
>Sent: Saturday, March 15, 2014 2:38 PM
>To: cdcbaa@yahoogroups.com
>Subject: Re: [cdcbaa] Chapter 13 trustee requires tax refunds in a 100% plan
>
>
>Nick,
>Same thing happened in one of my cases. Blindsided on Consent Calendar! 100% Plans! My order requires any refunds over $1,500.00 to be turned over!
>My advice to the client is to adjust their withholdings so they DO NOT receive a refund.
>It makes no sense, but appears to be happening to a few of us. There was another thread on this. Thanks for your deeper inquiry.
>
>Christine
>
>On Sat, Mar 15, 2014 at 12:28 AM, Nicholas Gebelt wrote:
>
>Dear Listmates,
>
>I have a Chapter 13 client whose 100% plan was just confirmed. It was on the consent calendar so I didnt attend the hearing. The confirmation order contained an interlineation requiring the debtor to send his tax refunds to the trustee for the pendency of the case, in spite of his being in a 100% plan.
>
>I called the Trustees office and was told that my clients sending his refunds would simply shorten the duration of his plan. I said that my client wanted his refunds to help cover living expenses and preferred to be in the plan for the full 60 months. My interlocutor asked me to send an email to the Trustee explaining my position, which I did. The Trustees staff attorney responded with the following:>
>Pursuant to the Bankruptcy Code and case law, the debtor shall turn over [sic] the Trustee his tax refunds accrued on his post-petition [sic] earnings because the tax refunds accrued on a debtors post-petition [sic] earnings constitute income. 11 U.S.C. 1322(a)(1); 1325(b)(1)(B); In re Diaz, 459 B.R. 86 (Bankr.C.D.CA. 2011).
>
>I responded with an email pointing out that: (1) Diaz is inapposite because it involved an 8% plan and my client has a 100% plan; (2) 1325(b)(1)(B) is only triggered if there is an objection to confirmation, which there was not, so that subsection is inapplicable to my clients case; and (3) my clients plan will pay 100% of his general unsecured debt, which is what is necessary for the execution of the planreds more than they are entitled to receive.
>
>In the past I have not had a Trustee require tax refunds in 100% plans (and I have filed a fair number of them), so this is new to me. I have spent some time looking for authority on this question, and havent found anything on point. What am I missing?
>
>Thanks for any insight you can offer.
>
>All the best,
>
>Nick
>
>Nicholas Gebelt
>
>Nicholas Gebelt, Ph.D., J.D.
>Attorney at Law
>Certified Bankruptcy Law Specialist
>
>
>
>Law Offices of Nicholas Gebelt
>15150 Hornell Street
>Whittier, CA 90604
>Phone: 562.777.9159
>FAX: 562.946.1365
>Email: ngebelt@goodbye2debt.com; ngebelt@gebeltlaw.com
>Web: www.goodbye2debt.com
>Blog: www.southerncaliforniabankruptcylawblog.com/
>
>Important notice required by 11 U.S.C. 528:We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
>
>Confidentiality Note: This e-mail is intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential, or otherwise protected from disclosure. Dissemination, distribution, or copying of this e-mail or the information herein by anyone other than the intended recipient, or an employee or agent responsible for delivering the message to the intended recipient, is prohibited. at 562.777.9159 or e-mail info@gebeltlaw.com and destroy the original message and all copies.
>
>Representation Note: If you have not signed a contract of representation, the Law Offices of Nicholas Gebelt do not represent you, and this email does not contain any legal advice for you.
>
>IRS Circular 230 Disclosure: In order to comply with the 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. >
>
>
>--
>Christine A. Wilton, Esq.
>Law Office of Christine A. Wilton
>5011 Argosy Avenue, Suite 3
>Huntington Beach, CA 92649
>
>Office: 714-533-9210
>Fax: 714-489-8150
>Email: attorneychristine@gmail.com
>Web: http://www.attorneychristine.com/
>Blog: http://www.losangelesbankruptcylawmonitor.com/
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