Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Thank you for your question.
Your payments are only deductible to the extent that the payments would have been deductible without the bankruptcy (e.g., local property taxes, auto excise taxes, etc.). If these are expenses or payments you would normally not be able to deduct, their status in the Chapter 13 does not change their deductibility.
Although the Trustee may be receiving your payments and then apportioning them to creditors, only those payments made for tax deductible reasons remain deductible. Sorry.
Please let me know if you have any other questions, or require clarification of this matter. Otherwise please hit "ACCEPT", so I may receive credit for my response. Tips and feedback are also appreciated.
I still don't understand, most of the payment is for resale items which should be deductible. Also a lease of equipment which is normally deductible.