Expert: Terry Leeders - 10/9/2007

Question
QUESTION: I just started a Ch 13 100% repayment plan for 5 years.  My attorney told me I don't have to give the trustee my income tax refund.  The letter I got from the trustee said I do.  Who is right here?  Also, I went online to look at my case and saw that a forgiven debt (got the 1099 and paid the tax) that was supposed to be removed was not.  I told my attorney.  Do we need to refile my bankruptcy?

ANSWER: Each jurisdiction can differ with the tax refunds, I would re-clarify it with your attorney.  Your attorney can also dispute the claim, get him proof that your debt was forgiven, and she can fight it.  You do not have to re-file.

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QUESTION: What happened is that the original debt was with JC Penny, who forgave it.  My attorney has the 1099 and tax statements.  Roundup funding bought it along with 3 other debts I had and filed a claim.  They did not respond to my attorneys letter challenging the debt with the 1099 and supposedly it was to be removed. But it was not.  How does that get adjusted?  It was reported to the trustee according to my attorney.

ANSWER: Your attorney needs to file an objection to claim and attach supporting docs.  They will need to prove the debt, otherwise the court will disallow the claim, and they won't be paid.

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QUESTION: I don't think I'm making myself clear.  She's already done all that.  Supposedly, it was to be removed when my plan was confirmed, but someone made a mistake.  She's not very good at getting back to me with things and I just wanted to know what is the next step she has to take.  Or should I call the Trustee directly?

Answer
It doesn't sound like the attorney did exactly what I suggested, but I can't say for sure.  You need to sit down with your attorney...thats what you are paying her for.  Don't leave until you are satisfied, as this is your financial well being at stake.  The trustee cannot give you legal advice, so you won't get anywhere by contacting the trustee.