If an individual owes money to the federal government because of a delinquent debt, the Treasury Department can offset that individual’s federal payment or withhold the entire amount to satisfy the debt.
TAX OFFSET REVERSAL WITH DOE
Hey so long story, but i am trying to see if anyone else has gone through this too. Background info. I filed for bankruptcy on 1/30/17. I found out on 2/1/2017 that my taxes had been offset due to old student loans. I spoke with the bankruptcy atty. She said that the offset violated the automatic stay that you are protected under while in bankruptcy.
So i called the DOE and they said they would refund the money. They are going to send a check to my house. They estimated anywhere from 4-8 weeks. Maybe sooner. Has anyone gone through something similar? Could you please share your expierence with having the DOE return a tax refund?
Thanks in advance. :)
SIDENOTE: Before anyone responds I know that bankruptcies do not discharge student loans, and that I will still be responsible for the balance once the automatic stay is completed.