Thank you for using justanswer. First, New Mexico law
requires that they get a judgment against you before they can garnish.
Secondly, Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment except for the following 5 reasons:
Â· Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;
Â· Section 6334 (c) of the Internal Revenue Code
(26 U.S.C. 6334 (c)) allows benefits to be levied to collect unpaid Federal taxes
Â· Section 3402 (P) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service
to satisfy their Federal income tax liability for the current year;
Â· The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and
Â· The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.
Please see below:
However, the burden of proof that the money in your checking account is not subject to garnishment is on the receiver. It is recommended that you keep your disability money separate from any other accounts you have, so as to be able to clearly define which money is exempt from garnishment.
If New Mexico wants to come after your VA disability, again, they need a judgment, and it is very difficult to garnish that on a state level, but again, with a judgment, it is possible.
Your best bet may be to talk to the taxing authorities
in New Mexico and see if they will accept a portion of the tax due under an offer in compromise due to your situation. If accepted, this would stop any further legal action to collect. Here is an email site for them if you want to pursue this angle. E-Mail Us
I hope this helps.