Friday, April 17, 2015
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.