Garnishment of installment payments
Client is judgment debtor in civil proceeding. Judgment creditor garnished the payments on an installment sale by client to 3rd party and principal and interest payments are being made to creditor through servicing agent. Would the installment payments have to continue to be reported by client debtor on 6252 even though nothing was received or is it taxable constructive receipt and treated as simply debt collection? Anything taxable to creditor or debtor?
