can the irs seize money on a secured debit/credit card?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
can the irs seize money on a secured debit/credit card?
Asked on June 19, 2009 under Business Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
A secured credit card is secured by money that the consumer deposits into a security account held by the lender. The lender then issues a card, secured by the account. The consumer can then use the card to charge up to the amount equal to that on deposit. Since we are talking about a secured creditor, the IRS could not seize the money, at least for the amount of the outstanding debt. They could however seize any unsecured amounts. For example, if you had a credit card secured by a $500 deposit and you had charges totaling $300, than $200 of the account would be unsecured and the IRS could make claim against that. Of course, your credit limit would be accordingly reduced by the amount seized.
This is my general understanding, however, without reviewing the credit documents, I can't say for certain.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.