The Louisiana Office of Debt Recovery (ODR) encourages debtors to resolve their debts voluntarily whenever possible. If a debt remains unpaid after all required notices have been issued and opportunities to resolve the debt have been provided, Louisiana law authorizes ODR to use collection tools available for the collection of unpaid state taxes. The collection method used depends on the type of debt and the authority granted by law.

Collection Actions ODR May Use

ODR may use one or more of the following collection actions.

Tax Refund Offsets

If you are entitled to a Louisiana state income tax refund, all or part of your refund may be applied to your outstanding debt. Refund offsets may continue while a balance remains due, including during an approved payment plan.

Wage Garnishment

ODR may require your employer to withhold a portion of your disposable wages and send those funds toward your debt.

Bank Account Levy

ODR may levy funds from your bank account to satisfy an unpaid debt.

License Suspension or Denial

Louisiana law authorizes the suspension, revocation, or denial of driver's licenses, hunting and fishing licenses, or other state-issued licenses.

Games of Chance Winnings

LA RS 47:1676 allows ODR to offset casino, lottery and sports betting winnings.

Other Collection Remedies

ODR may use additional collection remedies available under Louisiana law RS 47:1676.

How Can I Avoid Collection Action?

The best way to avoid additional collection activity is to address your debt as soon as possible. You may be able to:

• Pay your balance in full.
• Request an ODR payment plan, if eligible.
• Submit a dispute if you believe the debt is incorrect.
• Contact ODR to discuss your account before additional collection action becomes necessary.

Frequently Asked Questions

Will ODR use every collection action on my account?

Not necessarily. ODR evaluates each account individually. Collection actions are determined individually and are not in use at the same time.

Can collection action continue if I have a payment plan?

Generally, ODR will not pursue additional enforcement action while you remain current on an approved payment plan.

However, Louisiana state tax refunds may continue to be offset while a balance remains due. If you default on your payment plan, collection actions may resume as permitted by law.

Can I stop collection action?

Contacting ODR does not automatically stop collection activity. Resolving your balance, entering into an approved payment plan, or successfully disputing the debt may affect future collection actions, depending on the circumstances.

Will ODR notify me before taking collection action?

Both ODR and the referring agency must provide the notices required by law before collection remedies are used. The agency sends two letters and once the account placed with ODR, ODR will send another letter.