Social Security refusing to acknowledge my Chapter 7.

[RonSwanson]

Tacoma, WA.

Filed chapter 7 November 2014, that included an over payment by Social Security.*

Debt was discharged by the court in February 2015.

March 2016 I got a letter stating that my tax return was withheld by Social Security.

April 2016 received a letter stating that my debt was clear. my tax return and over payment amounts do not match, so holding my tax return would not have cleared the debt.

23 phone calls, 6 office visits and 7 months later I was given my tax return back.

December 2016, receive a letter stating that original debt is still owed.

Yesterday, received a letter stating that the funds returned to me (my tax return) is "benefits" and I will be taxed as it is income. taxed on my own tax return.

I am curious if a government agency like SSI is somehow exempt from the Bankruptcy?

If they are not, is this worth seeking legal counsel?

I am 100% sure that they will be taking my tax return again this year.

Any help would be appreciated. As you can probably imagined this has been going on for too long.

* filed for disability and was denied. a full 2 years later I was given back pay as they had denied me in error. when I contacted SSI for clarification I was advised to quit my job and hold on to the funds while they investigate. 8 months later was told that the funds I received did not include the time that I worked and that it was okay to keep the funds as I was unemployed at that time.

 

[LdiJ]

Tacoma, WA.

Filed chapter 7 November 2014, that included an over payment by Social Security.*

Debt was discharged by the court in February 2015.

March 2016 I got a letter stating that my tax return was withheld by Social Security.

April 2016 received a letter stating that my debt was clear. my tax return and over payment amounts do not match, so holding my tax return would not have cleared the debt.

23 phone calls, 6 office visits and 7 months later I was given my tax return back.

December 2016, receive a letter stating that original debt is still owed.

Yesterday, received a letter stating that the funds returned to me (my tax return) is "benefits" and I will be taxed as it is income. taxed on my own tax return.

I am curious if a government agency like SSI is somehow exempt from the Bankruptcy?

If they are not, is this worth seeking legal counsel?

I am 100% sure that they will be taking my tax return again this year.

Any help would be appreciated. As you can probably imagined this has been going on for too long.

* filed for disability and was denied. a full 2 years later I was given back pay as they had denied me in error. when I contacted SSI for clarification I was advised to quit my job and hold on to the funds while they investigate. 8 months later was told that the funds I received did not include the time that I worked and that it was okay to keep the funds as I was unemployed at that time.

A tax return is the document that you send to the IRS when you do your taxes. A tax refund is money that you get back from the IRS. Please do not use the words "tax return" when you mean "tax refund".

How much money are we talking about?

 

[RonSwanson]

A tax return is the document that you send to the IRS when you do your taxes. A tax refund is money that you get back from the IRS. Please do not use the words "tax return" when you mean "tax refund".

How much money are we talking about?

Good to know.

Initially Social Security stated that I owed them 20k. After fighting them for close to a year they changed the amount to 7k, to factor in the time that I actually worked.

However, because they kept giving me conflicting information about the exact amount, my bankruptcy lawyer put the full amount of 20k into my claim and this amount was discharged.

My tax refund was 5k.