WARNING

Tax refunds are pledged to the Chapter 13 Plan in all orders confirming plans, and you must give your federal and state tax returns to the Chapter 13 Trustee each and every year you are in Chapter 13. So they know what you refund is and will demand it. Accordingly, it is not wise to over-withhold from your payroll during your Chapter 13 case. You should plan to owe the government slightly, but not too much, so that you can pay the small amount due at the same time you file your tax return. Don’t learn this the hard way. Discuss with your accountant the proper number of allowances to bankruptcy attorney. Then make the necessary changes in your payroll department to the number of the allowances you claim as deductions