A Look at Setoff and Recoupment as Fourth Circuit Permits IRS to Grab Exempt Overpayment Refund

By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN)

Introduction

In Copley v. United States,1 Chapter 7 debtors attempted to exempt under Virginia law their right to a prepetition federal income tax overpayment refund. After the bankruptcy filing, the IRS set off the overpaid funds to satisfy the debtors' tax liabilities under 26 U.S.C. § 6402. In a matter of apparent first impression, the Fourth Circuit held that the exempt status of the refund did not prevent the IRS from applying the amount of . . .

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Passing of Sitting Chief Judge

The Academy

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District of Idaho Announces Passing of Chief Bankruptcy Judge Joseph M. Meier

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Just for fun . . .

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By Cathy Moran, Esq. (Redwood City, CA) One of the mysteries of Chapter 13 is why mortgage lenders don’t send an IRS 1098 for mortgage payments made through a Chapter 13 plan. And without that reminder piece of paper, our clients don’t realize that much of what the trustee pays to mortgage creditors is deductible interest. Miss that deduction and...

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By Daryl J. Smith, Senior Staff Attorney to Sylvia Ford Brown, Chapter 13 Trustee (Memphis, TN) and Katherine L. Rea, Staff Attorney to Pamela Simmons-Beasley, Chapter 13 Trustee (Columbia, SC) Is there ever a reason to oppose a voluntary dismissal of a chapter 13 that has not been converted from a chapter 7? Maybe. But will you be successful? Probably...

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Critical Case Comment – How Many Cats?

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From the Editor – Discharge Injunction

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