QUESTION
What can I do if SBA seized a tax refund from me after I filed Chapter 7 bankruptcy?
Asked on Feb 27th, 2013 on Bankruptcy - Michigan
More details to this question:
Chapter 7 Bankruptcy finalized in 2012. SBA creditor was not in credit history at final hearing and received the letter from them 1-11-13 stating I was in collections. My attorney stated they were not on the list of creditors. He had a to file an addendum for another $1000. I did my taxes and my refund was seized by the SBA for payment. Called my attorney and they never filed for the addendum.
4 ANSWERS
When I see SBA debts, I often laugh more out of frustration than because the situation is actually funny. We have always said that an SBA loan is written so that everything you own and everything you ever could own, including your first born child, is collateral for the loan. So what does that mean to you? Without reading the loan paperwork, I wouldn't be surprised to see that the SBA required you to give them collateral in all future tax refunds. I am, however, shocked to hear you say that this debt wasn't included in your bankruptcy filing. It is your responsibility, not your attorneys, to make sure ALL YOUR DEBTS are listed on your petition. The only way your attorney would know about this debt is if you told him about it! This could be a huge problem that should immediately be corrected.
Answered on Mar 01st, 2013 at 3:39 PM
Bankruptcy Attorney serving Plantation, FL
at
Moffa & Breuer, PLLC
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You need to have the case reopened and follow local rules regarding the reopened case.
Answered on Mar 01st, 2013 at 3:39 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
That is wrong. They can not seize and your attorney should have protected you.
Answered on Mar 01st, 2013 at 3:38 PM
Work with your attorney to get it filed and then try to get the money back.
Answered on Mar 01st, 2013 at 2:23 PM