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How Can Filing Bankruptcy Help with Tax Refunds and Debts?

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About Ralph A. Ferro Bankruptcy Lawyer

How Can Filing Bankruptcy Help with Tax Refunds and Debts?


Written and Verified by Ralph A. Ferro, Jr., Esq.

How Can filing Bankruptcy  help with Tax Refunds and Debts

Have unpaid taxes or debts?    You need a Bankruptcy Law Firm in NJ to Inform You How Unpaid Debts Affect Your Tax Refund

Dischargeable and Non-Dischargeable Tax Debt:

Dischargeable Tax Debt with Bankruptcy:

    • Avoid paying tax debt
    • The government cannot intercept your tax refund.

Dischargeable Tax Debt with no bankruptcy:

    • The government intercepts your tax refund.
    • At the same time, the government applies your refund to your tax debt.
    • As always, tax debt must be paid to the government.

Contact me, a Bankruptcy Law Firm New Jersey.   I provide guidance on whether your tax debt is dischargeable.

Certainly, you should not pay money to the government that is not required.

If you owe a tax debt that’s past-due, it will reduce your federal tax refund.  The Treasury Department’s Offset Program uses all or part of your refund and pays outstanding federal or state debt.

Here are 5 facts about tax refunds and offsets:

  1. The Bureau of Fiscal Service (BFS) runs the Treasury Offset Program.
  2. Debts such as: past due child support, student loans, income tax or unemployment compensation reduces your refund.  BFS use part or all of your tax refund to pay the debt.  However, you will receive a notice of these offsets.
  3. The notice lists the original refund and offset amounts.  Included in that notice, will be the agency that receives the offset payment and their contact information.
  4. If you believe you do not owe the debt or dispute it, contact the agency that received the offset. You should not contact the IRS or BFS.
  5. If you filed a joint tax return, you may be entitled to part or all of the refund offset. This rule applies if your spouse is solely responsible for the debt.

You may not fully understand or know how your tax refunds and offsets are affected.  Call me today :

Learn how filing bankruptcy can help with tax refunds and debts.

Contact me:  Ralph A. Ferro, Jr., Esq., Bankruptcy Law Firm New Jersey, for a free consultation now (201) 446-5904.