Can credit card creditors take your income tax refund?
There are only three conditions in which your tax refund is in danger of being seized. One is if you default on your student loan debt payments. Accumulating student loan debt without repay is never a good option. Another is when you have failed to pay off child support bills for an extended period of time. Lastly, there is the case where you owe back taxes, or taxes you have failed to pay over time. In these cases, only the IRS is able to seize your tax refund, either partial or in full, in an effort to ease a debt you already pay. Creditors have no right to go after your tax refund to pay off your creditors debt, so your tax refund is safe from creditors. That being said, they can still file a judgement and take you to court in a civil case in order to reap your actual account in order to pay off that debt.