TAX REFUNDS AND DEBT COLLECTORS – IS IT ABOUT TO GET EASIER TO TAKE YOUR MONEY?

 

 

TAX REFUNDS AND DEBT COLLECTORS – IS IT ABOUT TO GET EASIER TO TAKE YOUR MONEY?

One of the leading causes of filing bankruptcy is having a judgment entered against an individual. In Florida, the entry of a judgment allows a judgment creditor up to 20 years to collect the debt, allows the judgment creditor to place liens on property and even garnish wages in certain instances.

Now it appears that some debt collectors feel that is not enough power. Recently, an article out of Indiana House of Representatives highlighted the aggressive nature of debt collection these days. The article can be found here: https://iga.in.gov/legislative/2015/bills/house/1358

This bill provides that if a debt has been reduced to a judgment in Indiana and the judgment has not been satisfied, set aside, or discharged in bankruptcy, the judgment creditor may garnish a state tax refund otherwise due to the debtor. The bill also allows a writ of garnishment to be electronically filed with the department of state revenue. The easy garnishment of the tax refund will deprive many needy families of a source of income that many rely upon for providing extra income for necessary expenses.

At this point the legislation is only related to Indiana State tax returns. However, the debt collection industry is very powerful at lobbying. It would not be at all surprising if similar legislation is introduced in other States and/or targets the federal refunds of State citizens. If you have a judgment against you, don’t wait until your wages or property are seized. Call our office today to see if the debt may be discharged in a bankruptcy procedure.

At Mickler & Mickler, we attend Court on a regular basis. We have the experience and knowledge to ensure that you receive the correct advice when confronted with difficult financial decisions related to filing bankruptcy. Contact us at 904.725.0822 orbkmickler@planlaw.com.

 

Bryan K. Mickler