Can I put a stop to attempts to steal my money?

[nekom]

To make a very long story short, my wife has defaulted student loans. She did not receive a full education (her mother passed away and it all went south from there). She is not employed, and given our current situation does not need to be. She has no capacity to repay the loans, and I fail to see any advantage in paying them myself, so I don't.

 

Now the collections agency (or the IRS or whatever channel this goes through) attempted to steal my tax refund. I was able to file an injured spouse form and got that sorted out, but I'd rather not have to put up with that year after year. I file married, joint for tax breaks and there is always ONLY my W-2 as I am the only one employed. This is not a community property state, and the alleged debt was incurred before I met her anyway. I am in no way, shape or form responsible for this debt. Is this any violation of the law? I mean, they knew or should have known that the income was ALL mine. Is there any way to stop them from trying to steal my money, or am I just going to have to file an 8379 each year?

 

Also on that note, my bank account is in my name only. I do this because I do not want them stealing it if her name is on the account. Is this a legitimate concern? It would be far more convenient to have us both on the checking account, but I can't stomach the thought of having money stolen from me for a debt that I do not owe in any way, shape or form.

[hodap2001]

Federal law trumps state laws; therefore, you will continue to file an injured spouse every year; however, when it comes to retirement, your Social Security will be offset as a married couple; therefore, I hope you have enough money in the bank to retire on without the need of Social Security. Also, the Federal Government can perform a bank levy to retrieve the money that your wife borrowed for her education regardless if she completed or not.

 

Why is your wife unemployed? and Why does she not have the capacity to repay the loan? I am just not following yours and your wife's logic in not repaying a Federal Debt that was financed by the American Tax Payers? There are a lot of great repayment options available to rectify this situation and her credit scores.

[LynnInMN]

 

She is not employed, and given our current situation does not need to be

A message to the wife. Get a job. When your pompous husband leaves you for another woman, you will need good credit and a skill set.

[hodap2001]

Amen LynninMN! You made my day with your response.

Edited May 23, 2013 by hodap2001

[remethy]

If your wife is unable to work for some reason, she should look into applying for disability release of her loans. (not easy to get but a valid option for the truly disabled). If she is capable of working but just doesn't, she can apply for income based repayment, which will calculate her payment on a sliding scale based on her income. Since she has no income of her own, her payment would be zero. If she stays in IBR for 20 years, any remaining debt is forgiven. To do this you would not be able to file taxes jointly. Or you could do what you're doing and file an injured spouse form every year. Considering you and your wife are getting away with not paying what I assume is a considerable debt, that doesn't seem like too much trouble to go through.

 

Interesting that you want the tax benefit of filing jointly but don't see yourself as having any ethical obligation for your spouse's debts. You want the government to see you as one financial unit where it benefits you (taxes) but strangers to each other when it comes to her debts. Interesting attitude.

[LynnInMN]

REMETHY....from his comment I get the impression that she doesnt have to work...meaning he earns good money. When I was collecting, I came up against this type of spouse every once in awhile. Often it was a trophy wife, who did have to work but was kept on a tight budget and string. I spoke to a few of them....basically told them that with the divorce rate, she should be begging her husband to pay her loan now or to get a job and pay it herself. It is always "my" money, not "ours".One lady really comes to mind....she had an education but wasnt using it. She got a part time job, rehabbed and got her credit fixed. She established her own credit....he only had her as an authorized user on his cards. Two years late she called me back to thank me....hubby had left her for a bigger set of boobs. She had good credit and was able to get on with her life.

[evapor8ted]

 

 

She is not employed, and given our current situation does not need to be

A message to the wife. Get a job. When your pompous husband leaves you for another woman, you will need good credit and a skill set.