Legal Question in Bankruptcy in Massachusetts

I'm in a confirmed chapter 13 bankruptcy, Credit card debt and 1 year state and federal taxes. I have filed my taxes and am eligible for a tax refund as we overpaid our estimated taxes because my wife made apx. $7000 dollars less than last year. My question is will I receive the refunds or will the IRS and DOR keep them? Called DOR this morning and the operator told me that it doesn't matter that the past due taxes are getting paid through the court ordered plan that they will keep the refund and apply towards the past due taxes. To me this sounds like a violation of the automatic stay. The IRS said that my refund is scheduled to be deposited even though there is a refund delay code 1201 on my ss#. I am lost and confused and don't know who to believe.


Asked on 2/23/11, 7:44 am

1 Answer from Attorneys

Paul Lancia Attorney Paul Lancia

DOR gets the money no matter what. An automatic stay does not apply to such things.

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Answered on 2/23/11, 10:01 am


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