Can they or will they still take your federal income tax refund although you have already set up payment arrangements with them and are paying on time as agreed upon through arrangements set up through a bankruptcy????
2007-01-04 09:38:59 · 3 answers · asked by egg_sammash 5 in Business & Finance ➔ Taxes ➔ United States
Yes your refund can be used to pay your loan even though you have a payment arrangement through a bankruptcy. The offset will occur before the bankruptcy trustee receives any money.
2007-01-05 04:37:58 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
If you are behind on your payments, they might be able to. However, while you are under bankruptcy, the trustee may also take your refund to use to pay off your creditors.
2007-01-04 09:44:41 · answer #2 · answered by jseah114 6 · 1⤊ 0⤋
When you have defaulted, they can grab your refund and your stimulus rebate. However, since you got the $164, they may have satisfied the defaulted portion. You should take at least 1/2 your stimulus rebate and apply it to your student loans to avoid having this problem in th future. Avoid having it hanging over your head, grabbing future refunds, etc..
2016-05-23 03:49:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋