Can my tax refund be taken ifI have a default judgement of $7000?

UPDATED: Feb 7, 2011

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Can my tax refund be taken ifI have a default judgement of $7000?

I worked for a company and had an accident in the company vehicle. I did not find out that the lady admitted fault until after we went to court. My former employer did not get her vehicle fixed because she admitted to the insurance agency she was at fault. She said she is a lawyer and she knows how to beat the case. When they did not fix the vehicle she sued me personally for close to $7000. The judged did find me at fault for the accident and I got a ticket for it and supervision.

Asked on February 7, 2011 under Bankruptcy Law, Illinois


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Typically, a creditor can't take intercept a refund.  Other than the government itself, a creditor cannot seize or garnish such monies directly.  However, once you do receive it and deposit it into a bank account then if your creditor has a valid judgement against you, they can garnish such funds.  In fact, they can garnish any other non-exempt funds,as well as garnish your ages and seize other non-exempt assets. 

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