Hello,
Thanks to everyone on this board, I have started the rehab plan to fix my credit problem (made the first payment already). The problem is this... Due to my wife's immigration status, I have to give them 3 years of tax returns... which I have not done for 3 years. I've finally take care of that issue using an accountant... and will need to mail in my taxes ASAP (have not yet). I owe about 6K now after the first payment into rehab, but I will get about 6K back from the federal returns for last 3 years. This basically means that I will be settling. (I do owe for state but it seems you can transfer it to the state)
What is best course of action at this point? I have enough money currently to settle.... I wanted to improve my credit but at this point it seems like that is not an option since tax will settle it for me anyways... is it best for me to just call the CA and try to settle for less? and ask them to remove all the RECENT bad credit lines from them? and wait 7 years for the original bad lines to drop off (probably less since initially lines are from several years back).
Or is there way to stop the offset.... since I have started the rehab plan? I don't mind spending little extra to fix the credit problems... but I don't know what course of action to take at this point... By reading this board it seems there is no way to stop them from doing the offset.
So just settle... and try to get a best possible deal? (save money) and if so ask them to remove all the recent bad credit lines? or try to stop them from the offset somehow...
I rather try to rehab... to fix my credit... but if that isn't an option what is the best course of action at this point?
Thank you again!
Full Version: Tax Offset - Rehab started
I don't mind not getting the money for a while... is there way to have DOE withhold the money till the rehab is complete?
Talk to the person with which you made the agreement. After so many payments you should be able to remove it from tax intercept.
You could file an extension on your taxes and wait until you have enough payments so that they will not take your taxes.
Or they may take off the tax intercept right away. Especially if you have already signed your rehabilitation agreement.
You could file an extension on your taxes and wait until you have enough payments so that they will not take your taxes.
Or they may take off the tax intercept right away. Especially if you have already signed your rehabilitation agreement.
QUOTE(manchul @ Feb 7 2007, 10:36 AM) 
Hello,
Thanks to everyone on this board, I have started the rehab plan to fix my credit problem (made the first payment already). The problem is this... Due to my wife's immigration status, I have to give them 3 years of tax returns... which I have not done for 3 years. I've finally take care of that issue using an accountant... and will need to mail in my taxes ASAP (have not yet). I owe about 6K now after the first payment into rehab, but I will get about 6K back from the federal returns for last 3 years. This basically means that I will be settling. (I do owe for state but it seems you can transfer it to the state)
What is best course of action at this point? I have enough money currently to settle.... I wanted to improve my credit but at this point it seems like that is not an option since tax will settle it for me anyways... is it best for me to just call the CA and try to settle for less? and ask them to remove all the RECENT bad credit lines from them? and wait 7 years for the original bad lines to drop off (probably less since initially lines are from several years back).
The ONLY way to have negative information removed is thru rehab. If you choose to settle the account, they will simply mark it settled. Also keep in mind you will you will receive a 1099 for any portion settled off. However if they seize your tax returns and that pays off your account or drops you down below the $1000 level, you will not be able to continue with rehab.
Or is there way to stop the offset.... since I have started the rehab plan? I don't mind spending little extra to fix the credit problems... but I don't know what course of action to take at this point... By reading this board it seems there is no way to stop them from doing the offset.
So just settle... and try to get a best possible deal? (save money) and if so ask them to remove all the recent bad credit lines? or try to stop them from the offset somehow...
I would go for the settlement. Won't do anything for your credit but it will save you some $Q$
I rather try to rehab... to fix my credit... but if that isn't an option what is the best course of action at this point?
Thank you again!
Thanks to everyone on this board, I have started the rehab plan to fix my credit problem (made the first payment already). The problem is this... Due to my wife's immigration status, I have to give them 3 years of tax returns... which I have not done for 3 years. I've finally take care of that issue using an accountant... and will need to mail in my taxes ASAP (have not yet). I owe about 6K now after the first payment into rehab, but I will get about 6K back from the federal returns for last 3 years. This basically means that I will be settling. (I do owe for state but it seems you can transfer it to the state)
What is best course of action at this point? I have enough money currently to settle.... I wanted to improve my credit but at this point it seems like that is not an option since tax will settle it for me anyways... is it best for me to just call the CA and try to settle for less? and ask them to remove all the RECENT bad credit lines from them? and wait 7 years for the original bad lines to drop off (probably less since initially lines are from several years back).
The ONLY way to have negative information removed is thru rehab. If you choose to settle the account, they will simply mark it settled. Also keep in mind you will you will receive a 1099 for any portion settled off. However if they seize your tax returns and that pays off your account or drops you down below the $1000 level, you will not be able to continue with rehab.
Or is there way to stop the offset.... since I have started the rehab plan? I don't mind spending little extra to fix the credit problems... but I don't know what course of action to take at this point... By reading this board it seems there is no way to stop them from doing the offset.
So just settle... and try to get a best possible deal? (save money) and if so ask them to remove all the recent bad credit lines? or try to stop them from the offset somehow...
I would go for the settlement. Won't do anything for your credit but it will save you some $Q$
I rather try to rehab... to fix my credit... but if that isn't an option what is the best course of action at this point?
Thank you again!
Basically, due to my "situation"... I have no opportunity to "rehab" so just settle... correct? I guess I'll have to make that call to settle tomorrow... Thank you Lynn.
Hello,
Thanks to everyone on this board, I have started the rehab plan to fix my credit problem (made the first payment already). The problem is this... Due to my wife's immigration status, I have to give them 3 years of tax returns... which I have not done for 3 years. I've finally take care of that issue using an accountant... and will need to mail in my taxes ASAP (have not yet). I owe about 6K now after the first payment into rehab, but I will get about 6K back from the federal returns for last 3 years. This basically means that I will be settling. (I do owe for state but it seems you can transfer it to the state)
What is best course of action at this point? I have enough money currently to settle.... I wanted to improve my credit but at this point it seems like that is not an option since tax will settle it for me anyways... is it best for me to just call the CA and try to settle for less? and ask them to remove all the RECENT bad credit lines from them? and wait 7 years for the original bad lines to drop off (probably less since initially lines are from several years back).
The ONLY way to have negative information removed is thru rehab. If you choose to settle the account, they will simply mark it settled. Also keep in mind you will you will receive a 1099 for any portion settled off. However if they seize your tax returns and that pays off your account or drops you down below the $1000 level, you will not be able to continue with rehab.
Or is there way to stop the offset.... since I have started the rehab plan? I don't mind spending little extra to fix the credit problems... but I don't know what course of action to take at this point... By reading this board it seems there is no way to stop them from doing the offset.
So just settle... and try to get a best possible deal? (save money) and if so ask them to remove all the recent bad credit lines? or try to stop them from the offset somehow...
I would go for the settlement. Won't do anything for your credit but it will save you some $Q$
I rather try to rehab... to fix my credit... but if that isn't an option what is the best course of action at this point?
Thank you again!
QUOTE(LynnInMN @ Feb 7 2007, 05:37 PM)
QUOTE(manchul @ Feb 7 2007, 10:36 AM)
Hello,
Thanks to everyone on this board, I have started the rehab plan to fix my credit problem (made the first payment already). The problem is this... Due to my wife's immigration status, I have to give them 3 years of tax returns... which I have not done for 3 years. I've finally take care of that issue using an accountant... and will need to mail in my taxes ASAP (have not yet). I owe about 6K now after the first payment into rehab, but I will get about 6K back from the federal returns for last 3 years. This basically means that I will be settling. (I do owe for state but it seems you can transfer it to the state)
What is best course of action at this point? I have enough money currently to settle.... I wanted to improve my credit but at this point it seems like that is not an option since tax will settle it for me anyways... is it best for me to just call the CA and try to settle for less? and ask them to remove all the RECENT bad credit lines from them? and wait 7 years for the original bad lines to drop off (probably less since initially lines are from several years back).
The ONLY way to have negative information removed is thru rehab. If you choose to settle the account, they will simply mark it settled. Also keep in mind you will you will receive a 1099 for any portion settled off. However if they seize your tax returns and that pays off your account or drops you down below the $1000 level, you will not be able to continue with rehab.
Or is there way to stop the offset.... since I have started the rehab plan? I don't mind spending little extra to fix the credit problems... but I don't know what course of action to take at this point... By reading this board it seems there is no way to stop them from doing the offset.
So just settle... and try to get a best possible deal? (save money) and if so ask them to remove all the recent bad credit lines? or try to stop them from the offset somehow...
I would go for the settlement. Won't do anything for your credit but it will save you some $Q$
I rather try to rehab... to fix my credit... but if that isn't an option what is the best course of action at this point?
Thank you again!
No you don't have to settle.
You can ask them to lift the tax offset. They have to let you rehab the account UNLESS you have a judgment against you for the amount.
You can ask them to lift the tax offset. They have to let you rehab the account UNLESS you have a judgment against you for the amount.
QUOTE(jcs0527 @ Feb 7 2007, 09:56 PM)
No you don't have to settle.
You can ask them to lift the tax offset. They have to let you rehab the account UNLESS you have a judgment against you for the amount.
You can ask them to lift the tax offset. They have to let you rehab the account UNLESS you have a judgment against you for the amount.
No they wont just lift a tax offset so you can rehab. The guarantors would be out millions of dollars per year based on a "promise" of regular payments.
If the tax offset will be enough to clear the debt, then yes they will lift the tax offset. They did it for my husband.
You are entitled by law to rehab your loan. The ONLY way they can NOT allow you to rehab is if you have a judgment entered against you in court.
You can talk to the ombudsman for the department of education. I got the number from the department of education.
OP, you can also file an extension, that may give you time to make enough good faith payments to have the tax offset automatically lifted.
You are entitled by law to rehab your loan. The ONLY way they can NOT allow you to rehab is if you have a judgment entered against you in court.
You can talk to the ombudsman for the department of education. I got the number from the department of education.
OP, you can also file an extension, that may give you time to make enough good faith payments to have the tax offset automatically lifted.
QUOTE(jcs0527 @ Feb 7 2007, 11:39 PM)
If the tax offset will be enough to clear the debt, then yes they will lift the tax offset. They did it for my husband.
Since when?? Do you know how many people would be promising to make payments based on this assumption??
You are entitled by law to rehab your loan. The ONLY way they can NOT allow you to rehab is if you have a judgment entered against you in court.
This is true. But it doesnt mean they have to lift an IRS or state taxoffset. Liens are placed due to nonpayment....we used to get tons of calls in Jan-Feb from people begging to get their taxes back. Too late. You have to enter into repayment prior to Dec 1'ish, before the lists are submitted. A lot of our guarantors sent out letters telling borrowers if they wanted their $$, get into repayment by a certain date. What time of year did they lift your return???
You can talk to the ombudsman for the department of education. I got the number from the department of education.
OP, you can also file an extension, that may give you time to make enough good faith payments to have the tax offset automatically lifted.
Since when?? Do you know how many people would be promising to make payments based on this assumption??
You are entitled by law to rehab your loan. The ONLY way they can NOT allow you to rehab is if you have a judgment entered against you in court.
This is true. But it doesnt mean they have to lift an IRS or state taxoffset. Liens are placed due to nonpayment....we used to get tons of calls in Jan-Feb from people begging to get their taxes back. Too late. You have to enter into repayment prior to Dec 1'ish, before the lists are submitted. A lot of our guarantors sent out letters telling borrowers if they wanted their $$, get into repayment by a certain date. What time of year did they lift your return???
You can talk to the ombudsman for the department of education. I got the number from the department of education.
OP, you can also file an extension, that may give you time to make enough good faith payments to have the tax offset automatically lifted.
I don't remember... June possibly... They did say we had to make the first payment before it was lifted.
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
I've made my payment on 2/2.... paid my 10% as they wanted me to (which included the first payment)... I've also sent in the agreement for the rehab already... waiting to make the 2nd payment. Since I'm mailing the returns... probably on Monday... I'll take your advise and talk to Ombudsman office and see what happens. It won't hurt I think because I really want to fix my credit... but if they don't give me any options... then I guess I'll have to deal w/ it.
I may be able to hold my 2006 taxes where I get back 3500... I'll have to talk to the immigration lawyer...
2 K offset won't kill me yet. Will see.
Yeah... I really can't hold my taxes too long... I can't have my wifey kick outta the country... Priorities...
Thank Lynn and jcs for both of your time!
I may be able to hold my 2006 taxes where I get back 3500... I'll have to talk to the immigration lawyer...
2 K offset won't kill me yet. Will see.
Yeah... I really can't hold my taxes too long... I can't have my wifey kick outta the country... Priorities...
Thank Lynn and jcs for both of your time!
QUOTE(jcs0527 @ Feb 8 2007, 12:52 AM)
I don't remember... June possibly... They did say we had to make the first payment before it was lifted.
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
Yes it is on automatically withdrawal via my check card.
QUOTE(jcs0527 @ Feb 8 2007, 12:52 AM)
I don't remember... June possibly... They did say we had to make the first payment before it was lifted.
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
FYI... this is how it went...
I've called Ombudsman's office which directed me to GA Higher Education office. They told me that there is nothing I can do at this point... but probably to settle... and they will not lift the offset (or can't). I'm contemplating speaking to CA concerning this to lift the offset... which I'm not sure its a good option because I won't get a good settlement this way? I was thinking offering them incentive payment if they help me out here... Good idea or not? or is something like that against the law to do so?
I think that paying them extra $1000 or something like that to fix my credit isn't that bad of an idea... only if they help me... if they are capable.
Thanks again
I've called Ombudsman's office which directed me to GA Higher Education office. They told me that there is nothing I can do at this point... but probably to settle... and they will not lift the offset (or can't). I'm contemplating speaking to CA concerning this to lift the offset... which I'm not sure its a good option because I won't get a good settlement this way? I was thinking offering them incentive payment if they help me out here... Good idea or not? or is something like that against the law to do so?
I think that paying them extra $1000 or something like that to fix my credit isn't that bad of an idea... only if they help me... if they are capable.
Thanks again
QUOTE(jcs0527 @ Feb 8 2007, 12:52 AM)
I don't remember... June possibly... They did say we had to make the first payment before it was lifted.
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
OP, how many payments have you made already? When did you start paying back? Those facts may make a difference. do you have it set for automatic withdrawal?
Talking to the CA wont help. It is the guarantor that places the lien....CA's have no part in it at all.
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