QUESTION
I live in Utah, filed Ch 7 BK in Aug. 2010 recieved my discharge in Nov. 2010. The IRS just offset my tax refund for an unsecured SBA loan.
Asked on May 01st, 2011 on Bankruptcy - Utah
More details to this question:
My question is can they do that? The debt was discharged and we are completly insolvent. My lawyer said they CAN do that, but doing some research of my own its not black and white. First of all the SBA loan was unsecured and it was discharged in Nov. 2010. Which should protect me from futher collection activity's right?
1 ANSWER
2 Awards
Your tax refund is property of the bankruptcy estate. The IRS owed you money at the time you filed. At best, you could argue you are entitled to the pro rated amount that accrued on your refund from the time of filing forward.
Answered on Nov 10th, 2011 at 5:06 PM