Question about tax returns.

[blogger31]

What is the name of your state? Nebraska.

My wife currently has a judgement against her that I have been paying $150 a month to for a year now. After the law firm got the judgement we agreed to stipulated payments of the above amount. After filing taxes I was wondering if it is common practice for them to garnish your returns. Actually I don't even know if they can, but I figure if I still owe, they probably could. If they can garnish, can they garnish both Federal and State?

In my on going quest to pay off my debts and get debt free, our tax return is going to pay debts anyway, but if they garnish what I still owe them, it alters my plans just a tad. Basically, I am just looking to be prepared. Any advice or help on this would be appreciated.

 

[Ladynred]

No, they cannot touch your federal refund, state maybe, but I doubt it. However, if the funds go into your bank account and they're not happy being paid $150/mo, they could sieze the funds directly from the bank.

 

[blogger31]

Well let me ask, when you agree to stipulated payments, isn't that an agreement that they will not pursue any other form of action as long as you are paying the monthly amount they set forth? The $150 a month is what they told me to pay every month by the 15th. It was not what I offered. So I can't imagine they would be unhappy, if they were the ones that set this up.

 

[Ladynred]

Well let me ask, when you agree to stipulated payments, isn't that an agreement that they will not pursue any other form of action as long as you are paying the monthly amount they set forth?

Yes, that is correct. If they're happy with the payments, they have no reason to go after anything else.

 

[blogger31]

Thanks for your answers they are appreciated.