QUESTION
Can my ex-landlord garnish my taxes even though I've always paid on time?
Asked on Feb 02nd, 2015 on Landlord and Tenant Law - Michigan
More details to this question:
Hi. I was taken to court by the owners of the apartment building I used to live in. They were charging me for carpet replacement which I don't feel I owed for but ended up receiving a court judgement to pay for it. The agreement in court was for me to pay a minimum of $25 per month, which I have paid on time, every month since the judgement was filed. I have not missed a payment and some months I have even paid more than the minimum. Last year I paid them $100 the month that I filed my taxes. I received paperwork saying that they were going to garnish my taxes this year. Since I have never missed a payment and have always paid the agreed amount or more on time, is it legal for them to take my taxes? Also, there was never a set date that this judgement needed to be paid by. Thank you so much for the help.
4 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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A judgment is due and payable, when it goes good, in its entirety. It is doubtful at this point that you have a defense against the interception of your tax refund UNLESS you have an ORDER of the court for set installment payments (not just a minimum payment). The judgment creditor can use any and all legal means to enforce the judgment until it is paid in full.
Answered on Feb 04th, 2015 at 3:09 PM
Was payment plan in writing? If so, does it specify that plaintiff will refrain from further collection efforts so long as payments are made as agreed? Your only real option is to notice Dept of Treasury, plaintiff & court, in a timely manner that you object to the garnishment based upon the agreed payment plan. You'll get a hearing and the judge will decide whether they get your tax refund. As long as you file objections timely, state will hold refund until court directs them who to pay the funds to.
Answered on Feb 04th, 2015 at 1:22 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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If there was a court ordered installment payment plan they cannot garnish your tax return..if there was simply and agreed payment plan that was not court ordered its legal unless your agreement was that this would prevent other collection efforts.
Answered on Feb 04th, 2015 at 1:21 PM
Business Law Attorney serving Mount Pleasant, MI
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Office of Michael Hyde PLLC
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You may file a motion with the District Court that issued the Writ of Garnishment and request that it be rescinded or set aside. You would want to submit proof to the Court that you have abided by the agreement, that there is no set end date to the agreement and that this action (to seize your income tax refund) is unwarranted and will negatively impact your ability to pay other debts or provide for your family. Additionally point out that you disputed the original bill, but when the court found in favor of the landlord you have abided by the judgment.
Answered on Feb 04th, 2015 at 1:20 PM