If you filed chapter 13 bankruptcy will the trustee take your tax refund?

Yes, your trustee will require you to turn over your refund as a source of payment for your creditors. The reason for this is because the trustee will recognize your refund as disposable income received after filing for chapter 13 bankruptcy. If you were able to afford the bankruptcy plan on your regular income and were awarded a refund, then the refund would be recognized as a surplus. This surplus is then turned over to the creditors highlighted in the bankruptcy plan. There is a way around paying off your chapter 13 bankruptcy tax refund; however, by filing a plan modification to keep the refund away from creditors. A specific reason must be mentioned in the modification, and it must be a necessity in order for you to keep your refund.

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