REQUIREMENT TO PROVIDE COPIES OF TAX RETURNS TO CHAPTER 13 TRUSTEE
IN CHAPTER 13 BANKRUPTCY, THE COURT WILL REQUIRE THAT ALL DEBTORS TIMELY FILE TAX RETURNS DURING THE CASE PENDENCY. WHEN YOU FILE YOUR TAX RETURN, PLEASE IMMEDIATELY EMAIL SUCH COPIES TO JWELLER@WELLERLEGALGROUP.COM OR OTHERWISE PROVIDE A COPY OF THE TAX RETURN TO OUR OFFICE, IN ORDER THAT THE OFFICE MAY PROVIDE THE COPY OF THE TAX RETURN TO THE CHAPTER 13 TRUSTEE. THE BANKRUPTCY COURT AND THE CHAPTER 13 TRUSTEE REQUIRE A COPY OF THE SIGNED AND FILED TAX RETURN, ALONG WITH ANY ACCOMPANYING DOCUMENTS, INCLUDING 1099 FORMS AND W-2 FORMS.
CONSENT TO RETENTION OF TAX REFUND MONIES BY CHAPTER 13 TRUSTEE
ADMINISTRATIVE ORDER 2020-7, PARAGRAPH 18 AND VARIOUS OTHER ORDERS CONFIRMING CHAPTER 13 PLANS PERMIT THE CHAPTER 13 TRUSTEE TO CONSENT TO THE RETENTION OF YOUR TAX REFUND MONIES.
IF CHAPTER 13 TRUSTEE DOES NOT CONSENT TO THE RETENTION OF THE TAX REFUND MONIES, YOUR ATTORNEY, IF APPROPRIATE, MAY FILE A MOTION WITH THE BANKRUPTCY COURT FOR AUTHORITY TO RETAIN THE TAX REFUND MONIES.
IF A MOTION IS FILED WITH THE BANKRUPTCY COURT OR JUDGE, THE COURT WILL PRESUME THAT THE CHAPTER 13 TRUSTEE DID NOT CONSENT TO THE RETENTION OF THE TAX REFUND MONIES. THE BANKRUPTCY COURT WILL SET A HEARING TO DETERMINE WHETHER THE RETENTION OF THE TAX REFUND MONIES IS APPROPRIATE.
STANDARD FOR RETENTION OF TAX REFUND MONIES
IN ORDER TO RETAIN THE TAX REFUND MONIES, YOU SHOW THAT SUCH MONIES ARE NECESSARY TO PAY AN EXPENSE OR EXPENSES THAT ARE NOT PART OF YOUR NORMAL MONTHLY BUDGET. FOR EXAMPLE, YOU MAY NEED NEW TIRES OR BRAKE REPAIRS TO YOUR AUTOMOBILE, A NEW ROOF ON YOUR HOUSE, REPAIRS TO YOUR AIR CONDITIONING HANDLING UNIT, OR UNUSUAL MEDICAL EXPENSES. THESE ARE ALL EXPENSES THAT ARE NOT ONLY NECESSARY BUT ALSO NOT PART OF YOUR NORMAL MONTHLY BUDGET. SUCH SPECIAL CIRCUMSTANCES OR EXPENSES WILL GENERALLY RECEIVE NOT ONLY CONSENT BY THE CHAPTER 13 TRUSTEE, OR IF NO CONSENT IS GIVEN, THEN APPROVAL BY THE BANKRUPTCY COURT.
EXPENSES THAT ARE PART OF YOUR NORMAL MONTHLY BUDGET INCLUDE GROCERIES, GASOLINE FOR YOUR AUTOMOBILE, AND AN ELECTRIC BILL FROM THE UTILITY COMPANY. THESE FORMS OF EXPENSES ARE GENERALLY INCURRED ON A REGULAR AND MONTHLY BASIS AND WILL NOT GENERALLY BE DEEMED TO COMPRISE A SPECIAL AND UNUSUAL EXPENSE OR CIRCUMSTANCE, WHICH WOULD ENABLE YOU TO RETAIN THE TAX REFUND MONIES.
DOCUMENTS AND EVIDENCE NEEDED
IF YOU WISH TO RETAIN YOUR TAX REFUND MONIES IN CHAPTER 13 BANKRUPTCY THEN YOU MUST PROVIDE PROOF OF THE EXPENSES. FOR EXAMPLE, IF YOU NEED NEW TIRES FOR YOUR AUTOMOBILE, PLEASE PROVIDE A STATEMENT, ESTIMATE, OR INVOICE FROM THE MECHANIC SHOP OR PROVIDER, INDICATING THE COST TO REPLACE SUCH TIRES. SUCH STATEMENT SHOULD INDICATE THE SERVICES TO BE PERFORMED, THE COST OF THE LABOR AND MATERIALS ASSOCIATED WITH SUCH SERVICE, AND INDICATE THE NAME, ADDRESS, AND CONTACT INFORMATION OF THE PROVIDER, ALONG WITH THE DATE SUCH STATEMENT WAS PREPARED.
ABOVE PROCEDURES MAY APPLY TO RETENTION OF ASSETS OTHER THAN TAX REFUNDS
IF YOU RECEIVE MONIES DURING THE PENDENCY OF YOUR CHAPTER 13, OTHER THAN TAX REFUND MONIES, YOU MIGHT BE ABLE TO RETAIN THOSE MONIES USING A SIMILAR PROCEDURE, AS DESCRIBED ABOVE. THIS MAY APPLY TO MONIES RECEIVED IN A PERSONAL INJURY MATTER, SUCH AS AN AUTOMOBILE ACCIDENT, AN INHERITANCE, OR OTHER FORMS OF MONIES, THAT THE COURT OFTEN LOOKS UPON AS “WINDFALLS”.
IN SUCH INSTANCES, THE PROCEDURES AND REQUIREMENTS FOR RETENTION OF MONIES IS SIMILAR TO THOSE FOR RETENTION OF THE TAX REFUND MONIES IN CHAPTER 13 BANKRUPTCY.
THE ABOVE PROCEDURES AND INFORMATION ARE IN RELATION TO CHAPTER 13 BANKRUPTCY CASES ADMINISTERED IN THE MIDDLE DISTRICT OF FLORIDA, TAMPA DIVISION. OTHER DISTRICTS AND DIVISIONS MAY HAVE PROCEDURES AND TREATMENTS THAT DIFFER FROM THOSE OF THE TAMPA DIVISION OF THE MIDDLE DISTRICT OF FLORIDA BANKRUPTCY COURT.
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