Old Debt being taken off tax refund - WATCH OUT

[down&out]

[Minnymouth]

Very interesting!!!
What's HR Block going to do when the Trustee demands your income taxe refund...........they going to try to take it away from the Trustee??? I Don't Think SO!!!!!

Besides if you are past bankruptcy and the debt has been discharged HRBlock does NOT have the authority to turn over ANY INCOME TAX REFUND to anyone but you.... AND TRUSTEE if he interveins....

Very Interesting..... we'll see how this one plays out!!!

[Jman30]

I had this same situation when I was buying a US Savings Bond Online. I read the fine print before I hit SUBMIT and it said it basically said if you owe any backtaxes or tax money to the Federal or Local or State Municipality, they would take the money you submitted for the savings bond and apply it towards that debt.

[Jenn]

I used Turbo Tax, Im just bummed all of it is going to the trustee......for 3 years! Oh well........

[Minnymouth]

I noticed that Turbo Tax or Tax Cut software is a kickoff of HR Block...... so read the fine print on this also folks!!!!

Even HR Block better "realize" once it's discharged, it's discharged.... They do NOT have the authority to collect debts for anyone...............

[JGGR]

So, then what's the best way to file your taxes? I was planning on using turbo tax, but I don't want the $ to go the Trustee. Per our attorney, we don't owe anything to the IRS, so how should we file?

[Pinktiger]

I used Turbo Tax. They don't attach your refund. They can't. They are only a conduit for electronically filing. You are paying them for the service. For them to do otherwise than filing it would be a breach of contract. The only way anyone can take your refund is if you agree to let them. For example, some of these tax places loan you the refund up front, taking a cut of it and then getting the refund themselves from the state and federal. You agree to let them.
I don't know what kind of thing they are talking about here on the refund money; the only attachment I know of is for back taxes or child support.

[DebtSlave]

HSBC and its affiliates/Credit reports

I am resurrecting an old thread for the purpose of asking a question about HSBC company and its affiliates.
I am 2/3 into my CH 13 plan.
I check my credit reports every 6 months.
HSBC is the only company requesting credit info from my file. And they seem to do so every 3 months.
Does anyone have any thoughts about this.?
I will research them also.

[Minnymouth]

You can freeze anyone from looking at your credit report...... just by filling out a simple form and notifying all three credit bureaus.

Just remember, that if you apply for credit or loans, you will have to go back and unfreeze your credit reports in order to get the loans.....

Also HSBC may inquire every few months because they may hold one of the creditors accounts that you pay in your Chapter 13. Also they may report every 3 months......

[doglover]

I just did my taxes with H&R Block online and I didn't see anything about HSBC or any other banks or CC able to get money from our refund. I thought H&R Block just provided a service (for $19.99+) to make filing easier and able us to e-file. I don't think they are allowed to decide if certain CC companies get OUR refund. Hmmm ...... ya never know though. Hope mine is ok..

great, one more thing to worry about.

[6ftladycop]

Tax Refnds, Discharges and Closed Bankruptcy Accounts

I wanted to make sure I,m reading all of these post correct. Are all of you guys saying that after a bankruptcy has been discharged, closed and declared over, the tax service you guys use can take part or all of the refund and send it to trustees to pay off debt? Seems unfair after the courts declare your case closed and discharged. Is this allowed?

Also, after the discharge, did some of you actually say that old creditors who you used to owe before the discharge can keep monitoring your credit report? If this is true, how do you stop such a thing? Why would they do that anyway(continue to monitor your credit after a bankruptcy discharge)?

[stljohn]

i'm no expert but the tax services aren't collectors for the bk trustee. they just file your return its up to you to send the refund to the trustee. i've heard that other trustees have the refund intercepted.

before i filed 13 i used turbo tax and the only reason for a 3rd party to be involved was if you requested one of those instant refunds... which is really a loan... otherwise the tax service never has any way to touch your money.

i modified my with holding rate to reduce the amount being refunded until the last year there was no refund and I used a cheap online service called taxact.

[nervousnellie]

Get your facts straight before posting wrong info

H&R BLOCK prepares taxes.HSBC is a bank that offers to LOAN you your refund for a fee(IT IS A LOAN)until the IRS processes your return and deposits the refund in that Bank.If you have any offsets such as back taxes,child support,student loans,etc. then the bank gets zip. And H&R BLOCK does not get paid their fees.That's why the LOAN application you would sign says you are attesting that you don't owe any of the above and have not filed bankruptcy.(You are not allowed to take on new debt without trustee permission while in bankruptcy and I seriously doubt a Trustee would ok this kind of loan)If you owe bank or tax prep fees that never got paid(NOT INCLUDED IN A BANKRUPTCY) and you apply for the LOAN FROM HSBC BANK(NOT H&R BLOCK) in future years then those fees would be withheld from your refund at that time.H&R BLOCK has a bank but is not allowed by law to offer these REFUND ANTICIPAION LOANS thru their bank.Did you notice the word ANTICIPATION?
Hope this helps clarify the difference between HSBC and H&R BLOCK.

[Flamingo]

You have filed those debts under the protection of bankruptcy so they cannot take your refund and apply it to any outstanding debt still owed under your Plan. However, to be on the safe side during BK, since more than likely your return is small during BK (ours was as we used to be able to get over the standard deduction prior to filing), avoid the electronic forms unless you can get it free from somewhere. Why pay for Turbo Tax ($39 plus) when you can just fill out the plain paper form printed out free from the IRS website? Then you wouldn't have to worry about HSBC or anyone else trying to get fees via the fine print...

[CindyLou]

You have filed those debts under the protection of bankruptcy so they cannot take your refund and apply it to any outstanding debt still owed under your Plan. However, to be on the safe side during BK, since more than likely your return is small during BK (ours was as we used to be able to get over the standard deduction prior to filing), avoid the electronic forms unless you can get it free from somewhere. Why pay for Turbo Tax ($39 plus) when you can just fill out the plain paper form printed out free from the IRS website? Then you wouldn't have to worry about HSBC or anyone else trying to get fees via the fine print...

There is not reason you can't file electronically! Please see the explanation of the previous poster. This fine print is referring to the "LOANS" that you apply for to get your Instant Anticipation Refund.

When you file with HR block and your get an instant refund, it is not an actual refund from the IRS. You are actually getting a loan from HSBC in the high probability that you will receive a refund. You are then in turn signing your refund over to HSBC. BUT if you have filed BK then your TRUSTEE has first dibbs on your refund. Also if you have other debts like child support, they also have dibbs on your refund. Therefore HSBC would be SOL.

I do not think the OP understood the information posted in this old thread!