Hi everyone, I live in NYC... im having this problem with 4 credit cards... I have all this cards with a collection agency, believe me I learned my lesson about credit... anyway, they took me to court and I didn't go, so now they froze my bank account. There's only one collection agency for all 4 cards, and I'm trying to make a payment arrangement with them but they want me to make 4 different payment arrangements even tough is on collection agency with all 4 cards... My question is, will they take my income tax return? They want me to pay them 30% upfront of what I owe them, and the only way I can do that is if I can get my income tax return... I want to resolve this matter ASAP and I was thinking of getting the rapid refund filing so I can get the money in 24 hours and pay them? If I do that will they take the money? Since is HSBC bank who will make the rapid refund and they as a bank probably have a lien or something against me... some people told me to just do it directly with the IRS and wait 4 weeks for a check, since I can't have it deposit to my acct. because is frozen... please any advise would be appreciate it...

Hi everyone, I live in NYC.....im having this problem with 4 credit cards...i have all this cards with a collection agency, believe me i learned my lesson about credit....anyway, they took me to court and i didnt go, so now they froze my bank account. Theres only one collection agency for all 4 cards, and im trying to make a payment arrangement with them but they want me to make 4 different payment arrangements even tough is on collection agency with all 4 cards...My question is, will they take my income tax return? they want me to pay them 30% upfront of what i owe them, and the only way i can do that is if i can get my income tax return.....i want to resolve this matter ASAP and i was thinking of getting the rapid refund filing so i can get the money in 24 hours and pay them? if i do that will they take the money? since is HSBC bank who will make the rapid refund and they as a bank probably have a lien or something against me......some people told me to just do it directly with the IRS and wait 4 weeks for a check, since i can't have it deposit to my acct. because is frozen.....please any advise would be appreciate it......
rockstar008,

I live in NYC too, and I've been down that road! I can tell you that a collection agency CAN NOT seize your income tax refund unless you have the money sent via direct deposit into the account that they have frozen. I'm a little confused though, you say HSBC MAY have a lien against you?? Credit cards don't issue liens (that is against property), they will get a judgment against you which allows them to seize your bank accounts, and/or garnish your wages, which HSBC can't do, unless one of your credit cards is from HSBC. I haven't done rapid refund in many years, so I am not sure about whether they could just issue you a check (assuming that now they put the money directly into a bank account.), instead.

First, DO NOT do a Rapid Refund. That's just another loan at high interest rates. Second, if you do a Rapid Refund and your tax refund is seized, then you have nothing to pay the loan back.

When you do your return do NOT check off Direct Deposit. Have them send you a check. Open a new account to deposit that check and when it clears give them the 30%. I'm not 100% sure whether they can or can't attach your return (some places allow it), but if you do what I said, it should be safe.

If HSBC is one of the creditors, they could seize anything you have in accounts with them. Even if they didn't have a judgement, which you say they do, many card agreements state they can seize money in your accounts within their bank to pay outstanding debts.