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Tax Garnishment

Discussion in 'Social Security, Disability & Health' started by dvb1, Jul 26, 2015.

  1. dvb1

    dvb1 Law Topic Starter New Member

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    I am currently receiving Long Term Disability payments from a private carrier through my past employer.

    The start of NC has issued a garnishment order to my bank.

    Question...Can the IRS state Garnish my wages from my Long Term Payments. I have redirected my direct deposit from that account. I have Progressive MS and can not afford to pay those Tax people almost $6000 to work with the IRS for me.
     
  2. Betty3

    Betty3 Super Moderator

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    The IRS is considered a "superior" creditor & can garnish from certain income that other creditors cannot. It depends on the state. You might want to contact the Attorney General's office of your state & ask. They should have the answer for you.
     
  3. army judge

    army judge Super Moderator

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    You should immediately contact a bankruptcy attorney to discuss if BK would benefit you.
    Generally speaking, the IRS can only levy 15% of pension benefits, and in some cases can't touch disability payments. There are certain exceptions, USUALLY if fraud or criminal activity was proven.

    A bankruptcy can often absolve a person of all back taxes alleged to be owed.
    A bankruptcy filing can forestall ALL collection activity immediately.
    Eventually the bankruptcy stay could be lifted, or the tax debt eliminated.

    Talk to a BK attorney Monday. On Tuesday, a federal bankruptcy stay could be protecting you and your assets.

    An individual debtor can even file pro se, and receive the same result. It's complicated to file pro se, but not impossible. It's also about $2,000 to $4,000 cheaper.
     
    Last edited: Jul 27, 2015

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