Garnish income tax

by Shanta
(Atlanta ga)

i wrecked a car that i was still paying for. the loan company sued me and now i have to pay them back. Can they garnish my income tax because of this?

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Nov 09, 2010

auto loan deficiency
by: Gerri

Once a creditor or collector has a judgment against you, they have additional means to collect. What exactly they can go after is a matter of state law. Even if your income tax refund is exempt, once it goes into your bank account it could be fair game.

In addition, judgments can often be renewed which means they last forever. It's very stressful to have this hanging over your head.

That's why we strongly recommend that anyone who has an outstanding judgment against them at least meet with a bankruptcy attorney for a free consultation.

The attorney can tell you want property you own may be at risk and what is safe. If necessary, you may also be able to hire the attorney to negotiate a settlement on the debt on your behalf so you can put this behind you.

You can get more information, as well as set up a a free consultation with a bankruptcy attorney here.

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