Legal Restitution & Retirement Account

by Cheyrle
(Spokane WA USA)

I have a legal financial obligation in Spokane County in the State of Washington due to a felony conviction. I have been paying $150 every month on the debt for 10 years but with interest I will never get it paid off. As of right now it is over $260,000. I would like to start saving for retirement by opening up an IRA and want to know if the courts will be able to take it? Or if I buy a house will they be able to put a lein on it?

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Dec 07, 2011
 Legal Restitution & Retirement Account
by: Debtcollectionanswers.com

Since the money you owe is related to a criminal matter and because we are not attorneys, I recommend that you consult with a criminal law attorney in your area for an answer to your question. Sorry I cannot help you.
Dec 13, 2011
 paying restitution and recieved a 1099 c from the bank i have to pay restitution to what can i do?
by: Anonymous

I'm paying the fed's $300 a month because of a bank fraud i was convicted of. the bank now sent me a 1099c of 45,000.00 of 210,000.00 i owe in restitution. should the bank do this and if yes aren't they saying I'm not going to pay the 45,000 shouldn't that be deducted from my restitution?

Reply from DebtCollectionAnswers.com:

The reason they are sending you the 1099c is that the IRS considers forgiven debt as taxable income. It is not taken out of the restitution. However, you may be able to avoid paying taxes on that amount if you meet the IRS's standards for an exception or an exclusion. Because of the large amount of money involved, it would be a good idea for you to meet with a tax professional to find out what your options are here.

Read: How to Avoid Taxes on Forgiven Debt

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