Tax Refund in 100% plan - owe back taxes inside plan.

[murph996]

Of course, when I check today I see that the where's my refund tool will be down from the 23rd through the 28th. Right in the window where I would anticipate my refund. Oh well, that may save me from obsessing over it.

[murph996]

The IRS mobile app is up and running. My direct deposit date is Tuesday. I am in shock. Nothing ever seems to work out for me. Having a nice mini-run of good news.

[justbroke]

The IRS mobile app is up and running. My direct deposit date is Tuesday. I am in shock. Nothing ever seems to work out for me. Having a nice mini-run of good news.

You know, it might actually show up today. Please check your bank. (It has to do with how banks open on Saturdays and are technically open for the "next" business day. The next business day is Tuesday due to the Holiday.)

If not, no worries. Just check Tuesday morning and then let us know!

[murph996]

My date was actually the 29th.

Now, I have a question. I checked my offsets and there was an offset to the State of Ohio. They were included in My CH13. I don't believe they have the right to this offset? What should my next step be? I can contact my attorney, but should I try the State first? On the offset hotline, they gave me the # to call for the state.

[justbroke]

You should try the State first. There are some offsets that are permitted, and I think those are the special ones, like domestic support obligations (DSOs). Did the State ever file a claim in your Chapter 13? Is this an offset for DSOs? You may also want to ask your attorney.

[murph996]

It is for income taxes owed from 2009-2011. Yes they made claims for the full amount. I also will have a small ($200) refund due for 2012.

[murph996]

OK. Called the State, and they referred me to the outside collection office (Attorneys)

Ended up talking to the same collections guy that called me a few times in the past after I filed. I had sent his information to my attorney twice previously to contact them to stop collection activity since the State was listed and filed a claim. The agent says he never heard anything back from my attorney and that's why the offset wasn't lifted. He asked that we fax him the schedule of creditors, the signature page and first page of the filing.

I have already contacted the attorney via e-mail. I figured I'd give him a day or so to respond, otherwise, my thinking is that I can grab all that from pacer and fax it to him myself.

He indicated that he'd send it off to the State and they'd take it from there. I guess, I will get a check back from them eventually.

[justbroke]

Now it's starting to read like a violation of the automatic stay! Yes, they are allowed to do an offset, but they still need to seek permission for relief from the automatic stay in order to actually apply an offset. Unless it's a lot of money, I don't think too much bashing is necessary (you and your attorney bashing the State). They may just return the money to you, since there is a confirmed plan!

[murph996]

I absolutely think it is a violation of the automatic stay.

It's only $1000. He was a bit defensive and said that he had proper defense on violating the stay since they weren't notified. It may not be his fault, but surely I would have thought the State would have responsibility in notifying the agencies when they are notified and put in a claim for a BK13?

[justbroke]

I absolutely think it is a violation of the automatic stay.

It's only $1000. He was a bit defensive and said that he had proper defense on violating the stay since they weren't notified. It may not be his fault, but surely I would have thought the State would have responsibility in notifying the agencies when they are notified and put in a claim for a BK13?

They do not have a defense. They had "constructive" notice and probably "actual" notice since the State filed an actual claim! That means that the State and the CA "knew" there was a stay in place and that they willfully violated the Stay. Sounds like he was getting defensive, because that's exactly what he needs to do after violating the stay... come up with some sort of defense! In the end, the stay violation claim would be against the State and maybe the CA jointly. It would be interesting to read about how this is handled by the State.

Please keep us up to date.

(Also, now that I re-read what you wrote earlier... you do not need to send that CA anything. They now have ACTUAL notice of a bankruptcy stay. It is up to them to look up the case and information or obtain it from their client, the State. Having wrote that, you could be nice and send them what they ask for as a courtesy. I, even if I were being nice, would only send the Notice of Bankruptcy, as that is all that is required where a creditor was never notified. This creditor was notified, as they are only acting as Agent of the State and the State filed a claim in the bankruptcy.)

[murph996]

My attorney emailed me back saying that notice to the State of Ohio was served to the CA and the State office. He was going to fax the documents requested. He didn't say anything about additional filings regarding them violating the stay. Should I push this?

The only reason I want them to get the documents is so they get moving and I get the rest of my refund.

[justbroke]

Have your attorney send them a fax demanding that they honor the stay "or else". Usually, when someone violates the stay, you give them a warning to comply. If they then fail to comply after some artificial deadline you create (such as, refund my money within 7 days.... or else), then you file the motion for sanctions. You are at the "demand" to cure point right now, so your attorney may not be in the mood to drag them into court.

[murph996]

Thanks. And I'm really not looking to sue. I was pissed when I was notified that the CA was indeed informed directly. Because in the initial calls he wasn't entirely cooperative. I just want the rest of my refund, and I am holding off on filing my State taxes until I know this is cleared up so they don't grab that one as well. It's not that much, but every bit helps.

[murph996]

I faxed the documents over. In the cover letter, I just laid out the facts, date of filing, when the State put in the claim, and sent in a copy of the State's claim and asked that they take take the steps necessary to get me reimbursed as soon as possible.

[justbroke]

I would have demanded on a date "certain" rather than as soon as possible; but that's me! Good job getting this taken care of. I would call the CA/State back in 5 business days and make "certain" that they have mailed the check.