GARNISH INCOME TAX
Date: Tue, 06/02/2009 - 08:08
Income tax refunds can never be garnished to satisfy private deb
Income tax refunds can never be garnished to satisfy private debts such as credit card debts. It can only be garnished for Federal debts, unpaid student's loan, and unpaid child support obligation.
Its true that the cc companies cannot garnish your refund direct
Its true that the cc companies cannot garnish your refund directly, but once the refund comes into your bank account, the creditor can garnish it if they have an existing judgment against you to garnish your bank account.
Yes, however they need 1. Judgment, 2.Bank Levy granted by the c
Yes, however they need 1. Judgment, 2.Bank Levy granted by the courts. They cannot just go in and take your money in the bank. However that said, it has been known to happen that if you have paid a collection agency via payment arrangement with them and and you have been paying by check/debit card and go in illegally and take more money then what they are allowed. (Why it's never a good idea to pay Ca's with check/and or debit card).
They can also go into your account if you have a checking account at an intuition that also has your credit card. Say you have a checking account and you have a CC with BOFA. It's in the user agreement that if you default on the CC they can go into your accounts and take money.
