Monday 31 March 2014

I have a judgement filed in a Pennsylvania County Court for unpaid credit card debt. Can future state PA tax refunds be garnished? thanks...

Question

I have a judgement filed in a Pennsylvania County Court for unpaid credit card debt. Can future state PA tax refunds be garnished?

thanks



Answer

Nope. Tax refunds can only be garnished generally for child support or taxes owed to the IRS or PA DoR.

However, the creditor who holds the judgment can levy (freeze) your bank account if you keep more than $300 in there. They may also go after anything else you own. I don't know your assets and circumstances so I don't know what is at risk or not.

You need to think about how you are going to resolve this debt. It will not go away - judgments last forever. Judgments will be a lien on any real property that you own for 5 years and they can be renewed every 5 years. They are collectible (enforceable) against any personal property that you own for 20 years. They also earn interest at a rate of 6% per year so they will only get bigger.

Depending on your circumstances and the amount of the judgment, you may want to file bankruptcy. I would consider this only if you have over $10,000 in debt and you are going to be needing credit in the future.

If you cannot file bankruptcy for whatever reason, then it may make sense to save up and try to resolve the debt. Most creditors will accept between 50% and 80% to settle any judgments in 1-12 payments, but the exact amount and whether they will let you pay in installments depends on the creditor. Some creditors are nice to work with and some are not.

If you would like to discuss your situation in confidence, I give free email consults. I also resolve debts for a reasonable fee if you have the funds. Please contact me at [email protected]/* */

If you think that you may be able to procure the funds over time and if you have multiple debts, then you may be interested in a debt resolution company. There are many scam artists out there. Here is a link to a reputable company: http://www.national-legal-center.com. I can discuss this company in further detail with you if you are interested in exploring this option as well.



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