In re Diaz, 459 B.R. 86 (Bankr.C.D.CA. 2011)

By Jennifer Johnson, 2012 J.D. candidate, Nashville, TN

Holding: Income tax refunds received by Debtors post-petition but accrued on pre-petition earnings are property, not income, and are not subject to turnover to the Chapter 13 Trustee.

Case Summary

Timeline:

3/26/2010        Debtors filed Chapter 13
4/30/2010        Debtors filed their 2009 tax return
5/27/2010        Confirmation Order was entered
6/2/2010          Debtors received their tax refund
3/3/2011          Debtors filed a proposed Plan using the district’s mandatory plan form

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