Federal Taxes offset after BK Discharge

[malf1204]

So my No Asset Chapter 7 was discharged July 6, 2011. I received a letter this week telling me the Us Treasury was offsetting my 2011 Tax return for the State of Illinois Department of Employment Security for 1329.00. The notice went on to say that I had been notified in writing that this would happen and to call the State of Il if it was not correct. I called the State and they said they overpaid me Unemployment in 1999. I never received any written correspondence from them and have received many tax returns every year since 1999. The State is not claiming fraud and the statute of limitations to claim fraud expired in 2002. They claim I continued to collect after employed. That is not true but the employer went out of business years ago. I told them I had a no asset Ch 7 BK discharged in July 2011 and they said if they were not specifically listed the debt to them was not discharged. I did not know this debt existed. It is my understanding that in a No Asset Ch7 all debts are discharged unless it is specific non-dischargable debt such as a student loan or fraud and if a creditor was unknown that they were discharged anyway. So I guess I need to file a motion to re-open and amend the schedules and creditor matrix???

[angles]

This one should go to your attorney. I have the same understanding as you do, that no asset chapter 7 debts are included even if they are not listed.