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If it was a federal student loan, then yes, the collections agency could take your income tax return money. If it was a non-federal loan, then they would not be able. Secondly, federal student loans are can not be discharged, the US always gets paid even when laws are created for private businesses that disallow the same right of collections.

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Q: A student loan has been in default will collection agency still garnish tax return?
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Related questions

Can collection agencies garnish wages in Texas?

can a collection agency garnish your wages in texas


Can a collection agency garnish your pay check?

No a collection aggency cannot garnish a pay cheque


If you owed student loan money from Sallie Mae and it is now turned over to a collection agency can I be garnished?

Yes! If your student loans are with a collection agency they are in default. When student loans are in default the dept. of ed gives the collection agencies "CARTE BLANCHE" to collect the money by any means necessary. Wage garnishnent is only one.


Can a collection agency garnish VA disability payments?

No


Can a collection agency Garnish if paying not full amount?

no


What happens to a wage garnishment for a student loan if you quit your job?

The collection agency will wait until you get another job and garnish you again. As soon as the IRS knows you have a new job, so will the collection company. You can not avoid wage garnishment, but you can have the garnishment lifted. Default Management Services can help you. Google them.


Can a business garnish another business for debt?

A business can't garnish over another business, but if they hire a commercial collection agency to collect the debt, even then the agency can't garnish. When a business debt collection service goes to Court, the commercial debt collection agency can arrange a settlement to "force" the Court to garnish over the debtor. Collection Laws varies in every state


Can a collection agency garnish your wages?

A Collection Agency that "owns your debt" can not garnish any wages. Assume that the collection agency in their efforts to collect the debt for their client, sues the debtor and then provoke that the Court works an arrangement to pay the debt, if the arrangement includes garnishment of wages then, the Court can garnish salaries. And there is laws to garnish wages that apply to every state.


Are you notified if a collection agency will garnish your wages?

Yes. This is the law.


Can a collection agency take you to court or garnish your wages in Texas?

No


Default on a student loan?

In the US, if you don't pay your student loans for 270 days, they become default. When they become default, the collection agency will start to garnish your wages and the government will keep all future tax return refunds. You should consolidate your student loans and prevent the wage garnishment. You can get an income-based repayment plan and pay as little as $0 a month, defending on your income and dependants. If you want help with the consolidation of your student loans, click on the link below.


What happens if you do not pay a collection agency?

if a collection agency isn't paid, the debt can be put on a persons credit report. The collection agency can also choose to garnish a persons paycheck.