I had articulated on this board about a week ago my problems. I am glad to say that thanks to all of the wonderful advice and information I was given I was able to place a down payment on my $18,000 defaulted debt and am now making monthly payments that are do able for me, and my family.

Here is my question:

This DCS collections company called me, and stated that my federal tax return would be seized, and in turn put towards my debt. However, I checked my bank statement this morning only to find that my return has been deposited into my bank account.

Once it is deposited can they still take it? Did DCS or the IRS act too late to seize this money? What should I expect? Is it okay for me to be excited about having this money, or are they going to come after it?

Please - Any insight would be so very much appreciated!

I am not 100% certain, but I'm of the opinion that if your money is there, you're free and clear. I don't know at what point they start freezing bank accounts, etc., but if you are in rehab on your student loan, you shouldn't have any problems.

I have one question - did you give this CA access to your bank account in order for them to take their payment out every month (which, BTW, you are NOT required to do)? If so, you may want to move that money into a new account - while Lynn will tell you that it is rare that this happens, and CAs get into tons of trouble if they do, I and a few others who've come here have had CAs take more than the allotted amount (in my case they took over $1000 instead of only $130!!) from the bank account.

Glad to hear you got your tax refund - now stay current on that rehab!!!

once its in your bank account its yours. now 2008 is another matter but if you are rehabbing you should have no problems

Hello, and thank you for your concise and intelligent response.

She does NOT have my banking information yet. We reached a verbal agreement last evening on the amount of the down payment (10%, which i had to borrow from my wonderful boss) and we agreed on the monthly payment amount.

She did tell me that I would need to contact her in the morning with my banking information. The only reason she didnt get it last night is because I didnt have my wallet, or check book with me, and her shift was ending.

What should I do? Not give her the info? Or should I just put my return into a separate savings account and pluck from it as needed so that they cannot see it?

yup do NOT keep it in your checking acct

Well, it's up to you if you want to give them a downpayment, but like Lynn said, it is NOT required.

In my situation, I told them I did not share my bank account information with anyone, and would mail my payments each month. However, you may want to open up a seperate checking account and just transfer the payment amount in there each month.