QUESTION
If I have been paying 25% of my pay on a writ of garnishment, when I file my taxes will I be able to receive any tax credit?
Asked on Jan 05th, 2017 on Bankruptcy - Wisconsin
More details to this question:
I have been paying 25% of my pay on a writ of garnishment since July 01, 2016. The garnishment is not an IRS or state, it will take one year and half to pay it. Also, can I file bankruptcy and get it reversed or stopped.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Garnishments are not tax deductible, so paying a garnishment will not reduce your taxes. Filing bankruptcy will eliminate the garnishment.
Answered on Mar 06th, 2017 at 5:18 AM
There is no deduction. Most likely a BK will stop the garnishment.
Answered on Mar 03rd, 2017 at 5:39 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Generally,. filing a bankruptcy petition stops garnishments. (although to be certain, you'll need to have your lawyer contact your payroll office, the small claims court and the creditor) If the garnishment is for a general debt, you don't get any tax benefit from it. If it is for tax-deductible maintenance (spousal support), it is income to the spouse and deductible to you. Child support is not deductible.
Answered on Mar 03rd, 2017 at 5:38 PM
You should talk to an attorney about the tax credit and a refund. It's not obvious how you would get a tax credit without more information, but you can recover garnishments up to a certain amount after filing bankruptcy, and you can certainly stop the bleeding.
Answered on Mar 03rd, 2017 at 5:38 PM
You did not provide the type of information needed to answer your tax question. If you file bankruptcy, it would stop the wage garnishment. But there are a lot of other issues that need to be addressed before I can say I would recommend bankruptcy or that this is the kind of debt that bankruptcy can eliminate.
Answered on Mar 03rd, 2017 at 5:38 PM