Legal Question in Bankruptcy in Maryland

Protection from garnishment...

I just received a form 1099 from a previous employer. At face value it appears that I was compensated via ''other income'' for the year of 2001.

I left their employ in mid-1999...over 2 1/2 years ago due to their failure to produce on employment contract terms. Can a 1099 be issued as income for a particular year when I did not set foot in their state?

I have just filed my 2001 taxes prior to receiving this 1099.

I believe the employer is preparing to serve me with papers to reimburse relocation expenses from 1998.

My credit is perfect. I have very little, if any, discretionary income after obligations, ie, ''check to check''.

This NY based firm likes to attach property plus garnish wages.

Will bankruptcy protect me from garnishment? I would lose everything if this happens, thus, bankruptcy could not hurt any worse.

Is it possible that I would be better off accepting the 1099 sum and pay the taxes on same or enter into a protracted, expensive legal battle?


Asked on 1/24/02, 9:18 am

2 Answers from Attorneys
Joseph Trevino Law Offices of Joseph A. Trevino

Re: Protection from garnishment...

I believe such a "debt" if claimed by the employer, unless you obtained by "fraud" or other illegal means, can be and will be dischargeable under a ch 7. Call for more info. No obligation. Joe Trevino, 1800-924-6217, in MD. Or (3010)441-3131. Thank you and good luck.

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Answered on 1/24/02, 11:12 am
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Protection from garnishment...

Bankruptcy may be an answer for your problems; however, do not enter into

a bankruptcy without considering other options. First and foremost,

the company cannot attach and garnish without court action and this you

should defend against. If a demand has been placed upon you, you should

seek assistance of an attorney to address the demand, and defend or otherwise

negotiate settlement of the matter. Avoiding court action is to your benefit as well

as the company's benefit.

A 1099 can be issued for work not performed in the state. It appears that you will need to amend

a prior year's tax return, both Federal and State. State taxes generally are not paid for wages

that are not earned in the state; however, particular matters vary in this accord from state to state.

A trained tax preparer can assist you with resolving the tax matters.

Contact me at (410) 799-9002 if you require assistance with resolving the matter pertaining to the Maryland

company that is claiming that you owe them money for relocation reimbursement. If there is a unilateral breach on the

company's part, as you tend to indicate, this is but one basis with which to fend off their claim.

G. Joseph Holthaus III, Attorney

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Answered on 1/24/02, 11:32 am


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