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Can your taxes be garnished for a Judgement?

Sebastian Wright

If you are behind on your credit payments, creditors will often do whatever is necessary to secure repayment of the debt, which can include filing a lawsuit against you in court to obtain a judgment. But when it comes to your tax refund, the IRS won’t allow a private creditor to intercept or garnish it.

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What happens if you don’t pay small claims Judgement?

Keep in mind that if you do not pay the judgment: The amount you owe will increase daily, since the judgment accumulates interest at the rate of 10 percent per year. The creditor can get an order telling you to reimburse him or her for any reasonable and necessary costs of collection.

What happens when a judgement is entered against you?

The official written version of that decision is termed a court judgment. Once a judgment has been entered against you, you have only a very limited time to ask the court to reconsider the judgment, relieve you from a default judgment or take an appeal to a higher court.

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How can I find out if there is a judgment against me?

Therefore, by intentionally not appearing in court, you can assume there is a judgment against you. You can double-check if a judgment was filed by calling the court on the summons. However, you will also be notified when a judgment is entered against you, which is done by mail.

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Can a judgment creditor seize your tax refund?

Thus, in certain situations, a creditor may seize your tax refund in lieu of payment for your delinquent debt. A judgment creditor is any company or individual who previously won a debt-collection lawsuit against you. Creditors lacking a court judgment do not have the right to seize payment from you involuntarily.

Can a judgment be entered against you by mail?

However, you will also be notified when a judgment is entered against you, which is done by mail. But, if you’ve changed addresses or accidentally disposed of these pieces of mail, you may not be aware of judgments.