Can Sears garnish your tax refund?

Not directly. If, however, they sue for debt owed, they may be able to execute a judgment against the debtor's bank account in which the refund was deposited. Other options that can usually be used by a judgment creditor to satisfy a debt is income garnishment, seizure and liquidation of non exempt property, lien against real property. All states have a set of exemptions that the debtor can use to protect real and personal property, the most important one for property owners would be the homestead exemption. If a debtor believes themselves to be in a position where they can be sued, they should become informed of their legal rights under the creditor-debtor laws of the state in which they reside.