In a Panic!!!!

[sassiebaz]

Just noticed my tax preparer put my old routing number on my return. This means my direct deposit (refund) is going to my old bank in which I owe money. Can they put my refund toward any unpaid loans/credit cards???? I was told my a manager at the bank they would route the refund by my SSN. How is that even legal???? They have no judgements on me yet? Please someone calm me down....

[sassiebaz]

Well, they alreasdy took my state refund and applied it to my visa....Im am beside myself...that's $3K gone......I'm in tears!!!!

[EricaCallaha]

Are you in your bk now???

[Reddrocket07]

The only way your Tax Return would be safe is if its protected through your BK. If you havent filed BK, they prob. have it set up to garnish your tax returns and wages. Talk to your lawyer! Thats why we pay them!!!

[EricaCallaha]

I am just saying too because if they seize it and apply it to an account that is included in your bankruptcy, it would be like them getting an extra $3K on top of what the court said they could have. Against the law. Talk to your lawyer. He will probably get it back and you either have to turn it over to the trustee or bury it in your backyard.

[sassiebaz]

No, we haven't filed yet. I'm so upset..... They aren't garnishing anything. When anything comes into my old acct(which they never close) they automatically role whatever is there into the visa or car loan account. I'm literally sick. My tax preparer made this mistake. He got my routing# off my last years refund. He says I gave it tom him, but I can assure you I did not! I guess I have no recourse now...just screwed!!!!

[EricaCallaha]

That really sucks. But if you file within the next 90 days, be sure to let your lawyer know that your tax refund went towards this debt. The bank may have to give some of it back. It would be kind of like a preferential payment (even though you didn't want it to be).

Cheer up. I know it really, really sucks. I just did our taxes and we have a $7300 refund. $6300 will be going to the trustee. We can only keep $1K. It makes me ill just to think about it. But at least it is for a good cause??!! Right??

[Flamingo]

No, we haven't filed yet. I'm so upset..... They aren't garnishing anything. When anything comes into my old acct(which they never close) they automatically role whatever is there into the visa or car loan account. I'm literally sick. My tax preparer made this mistake. He got my routing# off my last years refund. He says I gave it tom him, but I can assure you I did not! I guess I have no recourse now...just screwed!!!!

All you have to do is close the old account. When the IRS can't get the refund through to the routing number, they will send you a check.

[253BK]

Yeah just close the account that should fix it!!! If you dont and the funds go there they will just start paying back balances with it!

GO to the bank in person and close the account dont try online or over the phone it wont help! Go deal with it and you will be ok!!!

[sassiebaz]

I don't think you understand. This is a credit union. They never close your savings acct. any and all loans we have with them are all connected to this savings acct. So, the refund just had the routing number but wrong bank acct. number. I called and spoke with a branch manager and she stated they would just match the SSN's and apply the refund to any loans that we owe. Sure enough that is what they did. My question is, why would they have the right to pay themselves with my entire refund, and not just the past due on the visa and car loan. Even that would be better than taking the entire $2800.00 Im going to call the law office in the morning and see if I can get some anwers. Then I wll call the credit union....Im sooooo mad!!!!!

[Flamingo]

I don't think you understand. This is a credit union. They never close your savings acct. any and all loans we have with them are all connected to this savings acct. So, the refund just had the routing number but wrong bank acct. number. I called and spoke with a branch manager and she stated they would just match the SSN's and apply the refund to any loans that we owe. Sure enough that is what they did. My question is, why would they have the right to pay themselves with my entire refund, and not just the past due on the visa and car loan. Even that would be better than taking the entire $2800.00 Im going to call the law office in the morning and see if I can get some anwers. Then I wll call the credit union....Im sooooo mad!!!!!

You didn't mention in your original posting that your "bank" was a credit union and that this account was a "savings" account. Without the proper information, no one can give you a correct reply. I would call whoever did your tax paperwork and have an amended return done changing the deposit information ASAP. I am surprised the tax preparer did not verify with you what you wanted done with your refund and to surmise that that account may still be open. You know refunds can be automatically deposited as they apparently had been done for you in the past into the same account...it's a shame you didn't advise them ahead of time to have the IRS send you a check. I know how it is trying to think straight during bad financial times.

[StartingOver08]

Flamingo, I think that the money has already been applied to the OP's outstanding loans. In her last post she says: ..." I called and spoke with a branch manager and she stated they would just match the SSN's and apply the refund to any loans that we owe. Sure enough that is what they did. "

The CU has the right to do this because the OP is behind in payments and authorized the CU to do it in the loan documents she signed. I don't know if the attorney can fix it now that it is done unless the OP files BK right away. She has not filed yet.

As has been pointed out, the funds may very well then go to the Trustee for benefit of the BK estate.

[EricaCallaha]

Word of note:

Sometimes if you have multiple open lines with a bank or credit union, they will not close your accounts. We had Chase for checking and savings and had a few cards with them. When I went to close the account, they told me that they wouldn't without paying in full the cards, even though they are not linked together. I asked our atty about this and he said it is pretty commonplace with the big lenders/banks. If they do not know about your bk, sometimes you can freeze the account to not let anything in or out.

Just my view on what happened to us and our bank. We will never bank and get a loan from the same place again....if possible. Too intertwined.

[dingdong]

Go to the bank and have someone else added to the account quickly that doesn't have your last name.

The IRS will only deposit if the names on the accounts match.

So if you have an account with Sassieaz Doe and Joe BLow, there is a chance it will be rejected and a paper check will be sent.

It may work, can't guarantee it.

Also, if the DD hasn't hit, you might have a chance of talking to the IRS and see if they can cancel the DD and issue a paper check.

[Flamingo]

Flamingo, I think that the money has already been applied to the OP's outstanding loans. In her last post she says: ..." I called and spoke with a branch manager and she stated they would just match the SSN's and apply the refund to any loans that we owe. Sure enough that is what they did. "

The CU has the right to do this because the OP is behind in payments and authorized the CU to do it in the loan documents she signed. I don't know if the attorney can fix it now that it is done unless the OP files BK right away. She has not filed yet.

As has been pointed out, the funds may very well then go to the Trustee for benefit of the BK estate.

You are correct - it's in her second posting but it's her "state" refund, not federal and I think she is worried about her federal refund; it may be too late to even file an amended return to change that account/routing number. I wonder if a call to the IRS would provide any results in getting that number changed - anything is worth a shot. What a shame she didn't catch that sooner or the tax preparer did not confirm with her how she wanted her refund handled and she should have caught it when she signed the return return but who knows how it was handled. And yes you are correct the CU has the right to do that. Once that federal refund goes in there, the same will happen to it as occurred with her state refund.