In Re Lyle

OPINION AND ORDER THEREON

Before the court is the debtor’s motion for turnover of his tax refund by the Santa Clara County Department of Child Support Services and sanctions for violation of the automatic stay. Because the funds are not property of the estate, the motion must be denied.

Background

At some time prior to bankruptcy, Sean Lyle became legally obligated to make child support payments to his former wife. When Lyle fell behind in his support payments, his former wife applied for public assistance and, as a condition to receiving aid, she assigned her right to receive the child support payments to the Santa Clara County Department of Child Support Services (SCCDCSS). To collect the past due payments, SCCDCSS reported the delinquency to the California Department of Child Support Services, which in turn, set procedures into motion to collect the back support payments through a federal tax intercept program set forth in 26 U.S.C. § 6402 . Under § 6402(e), after a state complies with certain procedural and due process requirements, the United States ■ Department of the Treasury is required to reduce an individual’s overpayment of federal income tax by the amount of past…