Legal Question in Bankruptcy in Massachusetts

I filed Chapter 7 Bankruptcy in the year 2010, and listed my Military Star Card. A card Issued through the Army Air Force Exchange Service (AAFES). My Federal Tax return was taken by a Third Party Collection Company for the debt I owed on that card. After speaking with two different people at the agency, i have recieved two answers from them. 1.) "Because AAFES is considered a Federal debt, it cannot be discharged and we are still allowed to take your tax returns" and 2.) "Even though you filed bankruptcy we can take your return because it is a Federal Asset. We cannot pursue collections, but the government can still take your tax return"
I have done a little bit of research and found several websites that say that the Military Star Card is an unsecured debt and CAN BE listed on a chapter 7 bankruptcy (wich mine was) and discharged (wich mine was as well). I have to imagine that someone (my attorney OR the FEDERAL JUDGE that discharged this debt) would have said something to me about them still being able to take my tax return. ANY HELP OR INSIGHT INTO THIS MATTER? IS WHAT THEY DID LEGAL? SHOULD I CONTACT MY BANKRUPTCY ATTORNEY AND HAVE HIM DEAL WITH THIS?

Asked on 3/02/11, 2:07 pm

2 Answers from Attorneys

David Baker Law Office of David Baker

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While it is true that tax debts to the government usually are not discharged, I seriously doubt if this is a "tax debt". Absolutely contact your bankruptcy attorney. If your bankruptcy attorney can't help you, contact me or another bankruptcy attorney near you. There's a list of them on the website for nacba.org - the National Association of Consumer Bankruptcy Attorneys. Best wishes.

Answered on 3/02/11, 2:19 pm

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