In re Diaz, __ BR __, 2011 WL 4621448 (Bankr. C.D. Cal., Oct. 3, 2011)
Oct 03, 2011OUTCOME: Court ruled in our favor and held that debtors could keep their pre-petition income tax refunds which the Trustee was attempted to seize.
U.S. Bankruptcy Court for the Central Division, Riverside, CA, held that tax refunds accrued on a Chapter 13 debtor's prepetition earnings, but received by the debtor postpetition, constitute "property ... " rather than income subject to turnover to the Chapter 13 Trustee. See In re Diaz, __ BR __, 2011 WL 4621448 (Bankr. C.D. Cal., Oct. 3, 2011). I wrote a detailed brief on the issue for debtors and argued the matter against the Chapter 13 Trustee in front of Judge Jury.
