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What happens to my Federal Income Tax Refund after I file a Chapter 13 Bankruptcy and I still owe the IRS Pre-Petition Income Taxes?

In the Eastern District of Michigan, Judge Opperman concluded that the IRS permitted to set off prepetition tax refunds against prepetition debts. However, the IRS is not permitted to offset postpetition tax refunds against prepetition debt, without first obtaining relief from the Automatic Stay.

SeeĀ In re Marcola, No. 07-23438-dob, 2011 WL 7789569 (Bankr. E.D. Mich. Apr. 22, 2011)