Do IRS Wage Garnishments Affect Your Credit Score?
More than ever, taxpayers are having their wages garnished by the IRS due to unpaid debts. IRS wage garnishments can happen for a number of reasons. Unpaid taxes, loans or child support can all result in wage garnishment. Wage garnishment consists of the IRS taking a percentage of your check. The IRS determines the percentage after gathering information about your current expenses. If you have a larger surplus in your income, a larger amount will be taken. There are obvious reasons why this can be financially debilitating. Many don’t consider what the long-term affect this can have on their credit score, or whether it has an affect at all.
The good news for those affected by IRS wage garnishment is that there is generally no direct affect on your credit score. However, the side effects of the financial hardship it can cause can, and most likely will, affect your credit score. For instance, when a large percentage of your paycheck is being taken, it may become difficult for to pay bills on time. Car payments, mortgages, and other expenses may become more difficult to deal with. Many may decide to completely stop paying their credit card bill, or defer payments to a later date. If this occurs, your credit score can lower substantially.
If you are facing this dilemma and looking for IRS wage garnishment help, it might be a good idea to hire an outside advisor to help you sort through your finances. Having an expert or tax attorney help you the process of wage garnishment can be financially life saving for many people who are under the burden of garnishment. There are steps one can take to prevent garnishment as well as prevent an adverse affect on a credit score. In order to prevent this from happening it’s often necessary to bring outside help.
A debt relief company such as Tax Tiger may be able to assist you with your IRS wage garnishment. Tax Tiger can offer customers some of the best IRS tax attorneys in the business. They can explain all the ins and outs of how to stop wage garnishment, or even simply reduce the current percentage being taken.
(Source: Does a Levy on Wages by the IRS Affect Your Score)
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