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Can unemployment be garnished for loans and by IRS?

Zach Chandler

in Student Loans

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Blair Lewis on February 15, 2019

Your unemployment benefits cannot be garnished by anyone but your state government for past due taxes of the state, and even then it is as a last resort. However, with an order of the court the loan holder can garnish your bank account under the pretext that they had no idea that the money was from unemployment benefits (the IRS is not going to do this), and good luck getting that money back anytime soon. They will hang on to him for months and months. There are also a couple of states such As Louisiana) that have Napoleonic law, which means, that you can get the sheriff to come take your personal items to sell as part of the payment for your defaulted loan. If you are in a desperate situation. Call the IRS. Tell them you are on unemployment and they will stop all collections, to get a job. Seriously. They will do this. Please, keep in mind that if you get a job and not in contact with them, you will be charged your salary and property, to your employer knows and so will anyone who looks at your credit report. If you contact your lender and not a payment agreement in writing, contact a bankruptcy attorney to discuss your options.


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