Consumer Bankruptcy Law and Practice: 9.4.4.4 Interception of Tax Refunds
The interception of tax refunds to pay student loans or other debts being collected by the government is another example of an act that is stayed.166 Although it is sometimes not easy to determine the date the intercept actually occurred, if it occurred after the bankruptcy case was filed it is normally possible to have the intercepted funds returned to the debtor.167 The Internal Revenue Service (IRS) has been one of the most frequent adversaries in litigation regarding these issues.