In re Wilkins (16-10213)
USDA Farm Service Agency filed motion for retroactive stay relief to allow offset of liability of Debtor against income tax refund due to Debtor. Court rejected USDA’s argument that the setoff was exempt under 11 U.S.C. § 362(b)(26) because that section applies only to liability of debtors for unpaid income taxes, and not to other types of liabilities to government creditors (like USDA). Court also rejected Debtor’s argument that the entry of discharge extinguished the USDA’s right to setoff.