Bryant 2009 WL 86758 (Bankr.W.D.Ky.)

Claims - Debtor's discharge did not prevent setoff of prepetition tax debt against prepetition tax refund.

A Chapter 7 debtor's discharge in bankruptcy did not affect the right of the IRS to offset a debtor's prepetition tax debt against its own prepetition obligation to the debtor for the overpayment of taxes. However, the debtor's discharge prevented the IRS from offsetting any postpetition refund that it owed to the debtor based on a prepetition tax debt that the debtor owed to it.