QUESTION
Does one state allow another state's Franchise Tax Board to garnish wages?
Asked on Sep 29th, 2014 on Bankruptcy - Colorado
More details to this question:
I recently moved to WA State (as a Federal employee) and just received a Balance Due Notice from the CA FTB for more than $100K for Estimated Taxes/penalties/Interest/Fees 1993-1996. I remember discussing with them then to prove their accusations. I was a one man self-employed remodeling contractor (and a Home Schooling Advocate). They seized my bank account at the time with less than $4 as I recall. I moved. Idaho, MT, SD and now WA. Should I pursue Chapter 7/13? I have no assets to speak of and gross less than $48k/year.
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, all states are required to accept tax judgments from other states. Either a Chapter 7 or a Chapter 13 will discharge this old debt.
Answered on Sep 30th, 2014 at 5:16 PM
One creditor can collect on a judgment if the debtor moves to another state. This is called "Comity". Certain things have to be done in advance, but it is permissible if you follow the procedures. I would strongly recommend that you go in for a face to face meeting with a lawyer to discuss your situation. This forum lends it self to short questions which can be answered quickly. As an attorney, I would need answers to a lot of questions before I could tell you how to proceed. Be ready to pay a reasonable amount for the consultation. When you do the Free Consultation, you get what you pay for (that's my biased opinion, but I have successfully filed THOUSANDS of bankruptcies!!). Good luck!
Answered on Sep 30th, 2014 at 11:59 AM