LVNV Funding LLC
Date: Fri, 05/14/2010 - 15:07
A client of my office, this is a query at no charge to the client, recently had the federal tax refund they received seized by court order by the firm representing LVNV. This client is a single mother earning $400/month in earned income and $19/wk in child support. She has major medical issues and has been hospitalized frequently, the most recent being last Thurs for two days. She has $5 for herself and her family tile the end of the month (16 days) no food in the house and no $ for gas for the car she borrows when needed. She has no pay check til the first of the month at which time rent and electric is due. The tax refund was her grocery, school needs and clothing for a growing 13 year old son and gas money for the rest of the year. She shops at Goodwill and Salvation Army and depends on hand outs from the community.
She acknowledges that at one time, when she had money, she had a debt to Chase Bank who has since sold this account several times. The law firm is refunsing to consider to even do an agreed turnover letter which would free a bit of the money for the summer and fall. She is on section 8 housing now so she will have AC supplied in the months of July and Aug. Part of her monthly income is from child support and as said before her total monthly income is approximately $479 plus or minus a few dollars.
My queston after this lenghy discussion is How Do We Get the attorneys to Consider a Hardship Release on Part of the Money? Any suggestion would be appreciated.
When her tax return is intercepted then she was most likely sued
When her tax return is intercepted then she was most likely sued by a law firm, you can contact the court to get their details.
Also you can search the site for more information on LVNV. They were discussed several times in the past. You may find the old discussions useful in dealing with the matter of your client.
Hmmm....?
Some things about this make me sort of suspicious. Can you clarify some things?
1- It is my understanding from reading boards voraciously and talking to local attnys prior to starting my own debt settlement that one of the options judgment creditors and judges do NOT have is siezing tax refunds before they get to the tax paying citizen. Its my understanding that the IRS simply will ignore a courts "order" to redirect the payment of a tax refund to a party different than who is on the return. The only way tax funds are directly siezed are to pay taxes owed to another entity (and possibly child support though im not quite sure on that one)
Now if youre saying that once her return hit her bank acct it was siezed that is a completely different circumstance. Thats siezing her bank acct not specifically her tax refund. Once funds go in the acct even exempt funds can be siezed and its up to the debtor to go reclaim them as excempt.
As to your second question its my understanding that it really is not up to the judgment creditor as to releasing the funds. If she goes and gets a hearing from a judge/magistrate and shows her budget and makes sure they understand a childs welfare is involved its likely that she will have the levy lifted.
Also some states like my own exempt a certain amount of "liquid assetts" such as funds in a bank from levy/attatchment. So for example in my state $5000 cash is exempt if one does not claim a homestead exemption so until/unless my bank acct exceeds $5000 it cannot be levied on, or if it is I can retrieve my exempt funds.
You might want to check into the state exemptions for your "client".
EDIT: Did some more research and confirmed in quite a few sites that your taxes cannot be taken PRIOR to them getting to you for civil debts. Only govt interests (back taxes/child supp/alimony/Student loans etc) basically anything the govt has a hand in which doesnt (for now thank god) include credit card/bank debt.
