Collection on unemployment and tax refund

Date: Wed, 02/11/2009 - 14:40

Submitted by anonymous
on Wed, 02/11/2009 - 14:40

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Total Replies: 1

I have defaulted on 3 credit cards and I'm currently unemployed. Also I'm temporarily living with my brother. I need the unemployment compensation and my upcoming tax refund to help me get set up again so I can begin working and pay off the debt. Can the creditors take my unemployment and refund, even though it will prevent them from getting all their money in the long run? I live in Seattle, WA

sorry it took so long to get back to you. The short answer is

sorry it took so long to get back to you.

The short answer is no. They cannot take your taxes unless they sue you and get a judgment in court. It also depends on your state laws. If your state laws do not allow your taxes to be taken then they can't touch them. If you have assets that are not exempt they can take them if they sue you and get a judgment.

Unemployment benefits are exempt income and cannot be taken regardless if they have a judgment or not. if they do sue you and win they can ask you to pay out of unemployment but they cannot make you, all you do is tel them no.

The likelihood of being sued by an original creditor depends on how high the debt is and if they think they have a good chance of collecting on it. All in all, Original Creditors for the most part do not sue but it does happen from time to time.

lrhall41

Submitted by pokertramp on Thu, 02/12/2009 - 16:07

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