Few problems create more anxiety than financial hardships. Creating distractions at work and at home, the stress affects all aspects of your life. Answering the phone and opening your mailbox brings dread as creditors continue to pursue past due debts.

Creditors possess vast resources in their collection efforts. They are often overly aggressive, continuing to call and make threats. While strict rules and certain restrictions exist, collection agencies still have the power to garnish wages and levy bank accounts. Their actions create even greater setbacks as you try to get back on track.

For many struggling with their finances, tax season represents a light at the end of a long and stressful tunnel. Federal tax refunds represent a way to catch up on past due bills. Yet, for those who have already been subject to garnishment and levies, they fear the loss of a much-needed monetary windfall.

According to the IRS website, past-due debts owed on credit cards or loans should not affect your federal tax return. The creditor may request that the IRS turn over the money to them. An order that the IRS claims they would be likely to ignore since the agency is not obligated to pay private creditor funds from a federal refund.

Options exist to protect assets. Proactive steps can prevent the most aggressive collectors from taking action against taking the money you have and continue to earn.

Take control of your out-of-control debts. One telephone call to Smith Law Offices starts the process of stopping creditor harassment and aggressive collection actions.