Who has dealt with Military Star Card/AAFES

[spr250]

So I filed on 18 OCT 2019 and already have my 341 meeting in DEC. When I filed, I realized I didn't file my 2016 taxes. I just got a letter from my state saying my state refund was intercepted to pay that military CC. They probably weren't updated on my BK filing. It was my understanding that they cannot attempt any type of collection attempt since I have filed. Has anyone dealt with this before? Should I call the number and update them and request my refund back and follow up with my lawyer if they don't or should I go straight to my lawyer and have them do it?

Thank you.

[spr250]

Oh, I just got the letter today of 28 OCT.

[justbroke]

So I filed on 18 OCT 2019 and already have my 341 meeting in DEC. When I filed, I realized I didn't file my 2016 taxes. I just got a letter from my state saying my state refund was intercepted to pay that military CC. They probably weren't updated on my BK filing.

It happens as things cross in the mail. Did you list this creditor?

It was my understanding that they cannot attempt any type of collection attempt since I have filed. Has anyone dealt with this before? Should I call the number and update them and request my refund back and follow up with my lawyer if they don't or should I go straight to my lawyer and have them do it?

Well they are prohibited, but if they had no knowledge of the bankruptcy filing, then this is only a technical violation of the automatic stay. Since this Star Card is a special type of credit from the federal government, it is susceptible to tax refund offsets. It looks like this was the case and they did this automatically without knowledge of your bankruptcy stay.

You should go straight to your attorney and have them deal with it. You could also call AAFES and inform them of the bankruptcy and let them know about the offset. Your attorney may need to work some other magic to a.) exempt the "expected" refund (before AAFES touched it), and b.) modify your schedules to reflect this refund.

[spr250]

Yes, it was included. I figured either they didn't get the notice yet or just didn't. Not alot of info for the lawyer to use other than name and debt. So thats why I figured I would call first since I know it was probably an honest mistake. Then if they played hard ball, give it to my lawyer to tackle. Just wanted to see if playing nice was an option first or are they jackass where its best to let my lawyer handle it. Thank you for the advice.

[spr250]

Even with it being governmental, it will be discharged. I also believe any return I get this yr is safely exempted.

[justbroke]

Even with it being governmental, it will be discharged. I also believe any return I get this yr is safely exempted.

Yes. This is dischargeable debt and should be discharged. Since it's not a "priority tax" it has no special treatment and is just like any other unsecured creditor.

[Brokecaliguy]

I can’t really give you any advise dealing with aafes and bankruptcy.But I did chuckle reading your post.I got out in 07,Remmber getting all excited for my tax return to come in the mail.But all I got was a receipt for them taking my entire tax return. I had completely forgot about it.Good luck man!

[spr250]

Brokecaliguy. Yeah been dealing with that too. Got out in '12 and been taking my tax returns since then by DFAS for bonus overpayment that they screwed me on. Just enough of my taxes are taken but right back up there for them 2 yrs later. Even yrs didnt have kids to claim so it was pay in. Esp after that junk called ACA was shoved down our throats. Atleast this will be the first yr I actually get taxes back and get to claim my kids. Really far too excited more than I should be. LOL.