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claymo · May 19, 2007, 10:38 AM

I have a garnishment against my personal bank account that has nothing to do with child support, alimony/maintenance or taxes. In reading I found that there are exemptions I can file on the money in this account. I live in Clay County, Missouri and the papers I received from the Sheriff's Office states that "If your money which is attached is federal pay or federal retirement benefits or some other payment from the federal government, it may also be exempt under federal law or not subject to execution."

My question is the majority of money in this account is from a Federal Tax Return. Can I claim exemption on the money from the federal tax return? Also the Federal Tax Return check has my ex-wife's name on it in which she signed and she is supposed to receive a portion of this money in the dissolution of marriage agreement. Our divorce was just final 16 days ago.

The bank account at time of garnishment was only 9 days old. Four deposits where made consisting of two payroll checks, Missouri Tax Return and Federal Tax Return so figuring out what part of this money I want to claim exemption on should not be a problem.

Thank You for your advice.

Fr_Chuck · May 19, 2007, 12:16 PM

Tax returns are subject to being garnished, and many moneys that the actual paycheck can not be garnished, once it enters into a bank accunt it may be'

But your pay checks and tax returns after deposited into the bank are all subject to attachment in the bank.

If you were not given proper notice for the judgement, or if the judgment is in just one persons name ( on husband and wife) if the bank account is a joint acount, and the judgement is ony for one person, you can file for the money of the injured party ( one without judgement on them) to have their money released. Their part of the income tax and if any of the payroll checks were theirs. Please understand that once it goes into the bank it is just money, and any proof of it being exempt is on you. Plus of course the returns are not government payments, in the sense it is merely your own money you paid in taxes being returned.

claymo · May 19, 2007, 12:36 PM

Bank account is in my name only. Judgment was made to me only 3-6-06 in which I agreed to make payments on. Payments where around $380 a month and after 6 months into agreement I could no longer pay the amount as I was flat broke.

Opened this bank account 5-5-07 so we could cash this Federal Income Tax check which was deposited on 5-14-07. I could not withdraw money on this check as bank policy is that within first 30 days of a new account there is a 5 day holding period on funds for that check. The same day we deposited check the garnishment was issued and on 5-16-07 the garnishment was put against this account. My ex-wife also holds a post-dated check from me for her part of the federal income tax return in the amount of $3,000 which funds are not available to cover now.

Is there any way I can exempt her part of the federal tax return as stated in dissolution of marriage she is intitled to?

Also curious about how fast they got my bank account information.

Thanks!

Fr_Chuck · May 19, 2007, 01:35 PM

Yes, if you were still married, she could and can get her part of it.

They were watching your credit account, anytime you open an account they run a credit check on you, and find out about your account. They most likely had the paper work signed by the judge the same day you opened the account.

claymo · May 19, 2007, 01:42 PM

Date of dissolution was May 2nd 2007. I was told by my attorneys secretary that it's not actually a done deal until 30 days after May 2nd.

Is there anything she can do to get her $3,000?

If there is a way for her to get this money, how fast does she need to act on this?

Thanks for advice again Fr Chuck.

claymo · May 19, 2007, 02:18 PM

Also please keep in mind she is not on this bank account and never has been. I do have a copy of the Federal Income Tax Return check from my bank that has both our names on it.

Fr_Chuck · May 19, 2007, 06:18 PM

Yes, but the check ( income taxes ) should have been a joint name, and deposited, she should be able to file an injured third party ( normally call it spouse but it can be any third party) motion with the court,
If you prove it was these checks and that a certain amount was hers, she should be able to get it.
** should is the word, I every state is a little different and I worked in criminal legal system not civil. So most of this is what normally or usually happens.

But I will add, that collectoin agency is "good" most don't catch new accounts for 2 or 3 months.

claymo · May 19, 2007, 06:36 PM

I will have her call the Sheriff's Office on Monday and see what she can get done.

Yes they are good. I have discussed a settlement agreement with them that is about $1,300 less than the total garnishment, but they have taken any bargaining strength I had away now. There is enough in the account right now to cover the entire garnishment. If she can get her part of the income tax out then there will not be enough to cover the garnishment and put account to less than the settlement offer. Maybe that will give me some leverage back to the settlement offer and get this taken care of.

Thank you for your time and advice.