A direct consolidation loan is a type of direct loan that combines two or more federal education loans into a single loan. Raphael Tulino, a spokesman for the IRS, offers an example: Lets say you owe $2,500. Child support is an obligation that counts as a debt when you qualify for a mortgage. That solid credit history can be crucial for a young adult trying to secure that first car loan or home mortgage. For example, questions regarding the priority given to certain garnishments over others are not matters covered by Title III and may be referred to the court or agency initiating the action. The CCPA defines earnings as compensation paid or payable for personal services, including wages, salaries, commissions, bonuses, and periodic payments from a pension or retirement program. Beware of companies that promise to resolve tax debt for pennies on the dollar. Ideally, however, you should contact a tax pro to help you. However, even this sorry story has a reasonably happy ending. Wage garnishments do not include voluntary wage assignments that is, situations in which employees voluntarily agree that their employers may turn over some specified amount of their earnings to a creditor or creditors. Examples of such deductions include federal, state, and local taxes, and the employees share of Social Security, Medicare and State Unemployment Insurance tax. Student debt refers to loans used to pay for college tuition that are due after the student graduates or leaves school. For instance, if the tax liability is exclusively due to your spouse or former spouse, you may qualify for innocent spouse relief. Taxpayers can set up IRS payment plans,called installment agreements. Both the Active Exclusions and Debt Subject to Offset fields are Yes or No fields.