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Post judgement and the IRS


logcabin
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Is this for a federal or state debt (such as back taxes, child support, or student loans)? If so, they yes, they can tax your tax refund BUT your spouse can file an injured spouse form to claim back the funds that belong to him/her.

If the debt is not for a federal or state debt, then the creditor cannot attach the refund. The creditor can however attach any bank accounts with your name on the account and take the whole thing (along with any other funds in the account).

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If they just filed the motion, I would hold off filing taxes (unless you already did so) and then file a reply to deny the motion showing that refunds are not attachable property AND that since the refund is with a third party who is not part of the case, the third party would be injured if the motion were approved.

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It was filed a couple of years ago, and it is for an old CC debt.  I’ve been faithfully paying my monthly payment, decided at the time of the judgement.  But this is the first year we will be getting a refund.. From what I could decipher by searching online, it looks like they can’t take the federal return but could attach the state?  And if the state my husband could file for the injured spouse, and could probably get most of it back from that?  I took myself off all of our acct’s. but my personal one, that I keep a very low balance in.  I am however, a signer on a couple of accts., but was told by the bank if I’m just a signer they cannot get at those accts.

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3 hours ago, logcabin said:

But this is the first year we will be getting a refund.. From what I could decipher by searching online, it looks like they can’t take the federal return but could attach the state?

That is correct.  A federal refund cannot be attached for a civil debt but a state refund can.  

3 hours ago, logcabin said:

And if the state my husband could file for the injured spouse, and could probably get most of it back from that?

Yes, he could file as an injured spouse and get his portion back.

If you have been making the payments as agreed then they are not likely to make such a move.  Typically they only go after tax refunds when no effort at payment has been made.

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A state refund being attached might be a state by state thing because I don't think that is allowed in Minnesota based on my research. Then again, Minnesota usually follows closely to the Federal Government when it comes to tax things whereas other states might not. Since I don't know what state the OP is in, I have to guess based on my own state rules.

I would still look into the state tax refund thing and make sure they cannot attach it. Do not rely on the creditor to give you correct information on what they can and cannot do.

Even if the OP is making payments, they might want to get paid faster and might be doing this hoping that the OP's husband will not know how to apply for injured spouse. If you already filed your state taxes, have your husband file for injured spouse immediately and I would still file a reply to the motion demanding that the motion be denied but in alternative, they can only take the percentage of refund that is based on your income only.

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This motion was filed a couple of years ago, so too late to do anything about it.  But my understanding is, if it’s been granted (and it has), it will automatically attach to any refund by the State (Mich.).  Yes, our taxes have been filed, so we’ll have to go from there.  Even tho I’ve made regular payments, once they’ve been granted the motion, they really don’t have to do anything, right, the State will automatically attach it?. So, Clydesmom, you’re saying if the State doesn’t automatically attach, they may not go looking for it?

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34 minutes ago, logcabin said:

This motion was filed a couple of years ago, so too late to do anything about it.  But my understanding is, if it’s been granted (and it has), it will automatically attach to any refund by the State (Mich.).  Yes, our taxes have been filed, so we’ll have to go from there.  Even tho I’ve made regular payments, once they’ve been granted the motion, they really don’t have to do anything, right, the State will automatically attach it?. So, Clydesmom, you’re saying if the State doesn’t automatically attach, they may not go looking for it?

Michigan is the problem.  They are VERY creditor friendly.  Since they already have an approved motion they have likely already notified the state tax treasurer and simply are waiting for you to actually get a refund.  

 

 

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Here is information that should help you determine the process:

http://www.michigan.gov/taxes/0,4676,7-238-43513_44135-168434--,00.html

It looks like Michigan will garnish the state tax refund, HOWEVER there is a process that will be followed. You will receive a notice and there will be a for to fill out where you have to allocate your income vs your husband's income. Once that is returned, the state will process the form and then allocate the refund based on that form to your husband and your creditor. Make sure to keep that and add that to the payments you have already made so that you know when the judgement is satisfied.

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OK, sorry to keep at this, but I went back and looked at the motion for state tax garnishment, and it shows BOA as the Plaintiff,and then it lists the attorney as the representative for them.  The judgement was recently passed off to another JDB, and so I’m wondering if the State would still be able to “find” this garnishment.  I’m assuming they would still be able to attach it because the OC has not changed, just the law firm collecting.

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1 hour ago, logcabin said:

The judgement was recently passed off to another JDB, and so I’m wondering if the State would still be able to “find” this garnishment.  I’m assuming they would still be able to attach it because the OC has not changed, just the law firm collecting.

If BoA hired another law firm then all that has to happen is a substitute of counsel with the courts.  It has no affect on the motion to garnish a state tax refund.  Also the new firm is merely the new law firm they are not a JDB.  If BoA still owns the account/judgment then no JDB is involved at all.

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