Is your State of Michigan Tax Return Safe?

The State of Michigan is the only state that allows creditors to garnish your Tax Return.  If you have a Judgment entered against you, chances are the Creditor will send in a garnishment notice to the State of Michigan.  The cost is $6.00 and if you have a refund coming, some or all of it will be sent to the Creditor.  So what can you do?  If you are married and the judgment is not joint, you can file an insured spouse application.  The form is “Income Allocation For Non-Obligated Spouse Form 743”  That way you can keep at least part of your refund.  Another option would be a Bankruptcy filing to address all of your debt.  If you choose this route, make sure you file your Bankruptcy before you file you state income taxes.  In fact, its best to wait until you get your discharge.  The State of Michigan has been known to send tax refunds to creditors even after a Bankruptcy filing, and its always difficult to get the money back from the Creditors.

 

 

Written by admin

Bankruptcy Attorney serving Grand Rapids Michigan and all of Western Michigan

Website: http://www.grandrapidsbankruptcylaw.com/demo

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