Can Collector Take Tax Refund by: Debt Collection Answers
Thanks for getting in touch.
A tax refund can be intercepted (taken before it's paid to a consumer) only when the debt being collected is a past due federal student loan, a tax debt that is owed or unpaid court ordered child support. However, if the tax refund money is deposited in an account that is held by you and your spouse, then the debt collector would be entitled to go after the funds in that account to collect on the judgment against you.
I recommend that you schedule a free consultation with a bankruptcy attorney to find out what your options are for dealing with the judgment. If you file for bankruptcy, the judgment cannot be enforced while you are in bankruptcy, and depending on the nature of the judgment and the kind of bankruptcy you file, you may even be relieved of your obligation to pay the judgment. At the very least, filing for bankruptcy will provide you with an opportunity to figure out how to deal with the judgment and help you protect as many of your assets as possible from the collector with the judgment. Best of luck resolving your problem.
Learn how debt collection laws can help you! This website does not provide legal advice. All information is for educational purposes only. Copyright 2007 - 2019 by Mary Reed and Gerri Detweiler. All rights reserved. Read our Privacy Policy here