Can a financial instituion garnish my Federal return?
I live in Michigan and owe a financial institution on an automobile loan. I just filed my taxes for 2006 this year. I received a letter from the bank stating that they have permission from a court order to be able to garnish any bank account and refund I have. Since I’ve received this notice in 2007, will they be able to garnish my 2006 Federal refund?
Tags: automobile loan, bank, Federal, federal refund, Financial, financial institution, garnish, instituion, Michigan, return
If they have a court order stating they can have yoru refund until the bill is paid in full. . . yes they can, and if need be, they will take the next year’s return as well.
Sorry, but no bill goes unpaid in this the decade of litigation.
You’re not totally clear. Usually a bank cannot touch your refund, unless you give permission. However, back child support, defaulted student loans, back taxes, can and will be taken. Now IF you’re trying to get a refund anticipation loan from Block or Jackson Hewitt, who both use Santa Barbara Bank, the bank may have some agreement and be grabbing something. So when you file, don’t get a loan, have it direct deposited to your own bank account or mailed to you–only takes 2 weeks for DD.
Talk to these people, and make a deal with them. Set up payment, give them a lump sum from your refund, in return for them reducing th amount of indebtedness–but make sure they agree NOT to issue you a 1099C.
oh yes they can , the court order is all the proof you should need . You had the chance to resolve the garnishment when you where sent papers to appear in court, that was your chance to make pay arrangements , if you did go to court and failed to comply with the arrangement or court order then they garnish your wages or tax return etc.