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Repossession
Income Garnishment
Income Taxes

Can a lender garnish your wages and income taxes after repossession?


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Wiki User
2015-07-14 16:07:08
2015-07-14 16:07:08

IF they have a JUDGEMENT for the balance due, they can garnishee your wages. Income taxes?? NO

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Yes....but not your federal income taxes.

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noboby can garnish your income tax except for the government. Unless they take you to court. If they do that file chapter 7.

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I found the answer to my own question as I contacted an attorney in my area...For those of you who would want to know the answer is NO. A lender or collection agency is not able to take your yearly income tax return if you have a deficiency from a vehicle repossession. The only thing they can do regarding your taxes is file a 1099 form if they chose to forgive the debt which would mandate that you report the amount as income on your tax return to which you pay taxes against it.They can however file a judgment against you and in some states can garnish your wages but that varies.Hope this helps.

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Yes, it can. Taxes owed are garnished from all sorts of income, unfortunately.

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Up to 25% of your disposable income. Disposable income is gross - taxes.


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