Can they garnish your paycheck or tax return for the remaining balance on your repoed van?
A creditor would have no authority regarding a tax refund. But
they can file suit and if they win, receive a writ of judgment.
They could then use the judgment as a wage garnishment according to
the laws of the state where the debtor lives. Texas, South
Carolina, North Carolina and Pennsylvania do not allow wage
garnishment by creditors. All other states have established their
own garnishment statutes, most follow the federal wage garnishment
guidelines.
Related Q&A：
What is a Writ of garnishment？Oh boy, a Writ of garnishment is a legal tool, you know? It's basically an order that allows a creditor to take money or property that belongs to a debtor from a third party, like an employer or a bank. Say someone owes a bunch of money and the creditor gets this writ, it can force that third party to hand over some of the debtor's funds or assets to satisfy the debt. It's a pretty serious thing in the legal world! But it's not something that happens all the time.
