Federal Government can seize tax refunds for decades old debts.

Edrie Pfeiffer
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Edrie Pfeiffer, Bankruptcy & Divorce Attorney
Posted on Apr 16, 2014

Many individuals have had their tax refunds seized for debts that they didn't even know they owed and may not owe. A recent change to the Federal Law that limits how long the Federal Government may collect on debts removed the ten-year limit on collections. This allowed the Federal Government to collect decades-old debts. Many individuals who received notices that their tax refunds were being seized did not even know that they owed money and in some cases, they may not owe the money.

After the collection efforts were exposed in the media, the Social Security Administration announced that they would no longer be collecting on debts that were over ten years old. While this is a welcome relief, it does not change the law and Social Security could reverse this decision at any time.

If you have old debts to the Federal Government or have been told that you might owe the Federal Government, bankruptcy may be able to help you get rid of these debts permanently. Contact Hampton Roads Legal Services at 757-276-6555 to schedule a free consultation today.

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