QUESTION

If the department of treasury is fixing to garnish my disability check, would bankrupcy stop this ?

Asked on May 07th, 2012 on Bankruptcy - Mississippi
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Bankruptcy Attorney serving Burbank, CA
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It will stop it at least temporarily.  Whether it is permanent or not depends on which chapter of bankruptcy you file, and whether the underlying tax obligation is dischargeable or not.  You don't provide any details on the tax, including the type of tax it is (or if it is even a tax), so it's difficult to respond further. Income taxes are dischargeable if all of the following prerequisites are met as of the date your bankruptcy case was filed: (1) it has been more than 3 years since the returns were last DUE (including extensions) to be filed, (2) the returns were timely filed or it has been at least 2 years since the returns were filed, (3) there was no fraud involved or attempts to evade the tax, AND, (4) the taxes were not assessed within the last 240 days. If the taxes are dischargeable then there would be no further garnishment on your disability after your case is completed, but they would retain their lien against any other assets you have that exist on the date your case is filed.  This can often be removed by agreement, but it really depends on the facts. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr    
Answered on May 07th, 2012 at 5:33 PM

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