Help -- oweing money to Uncle Sam
Date: Tue, 02/03/2009 - 12:42
When the problem was noted, I entered into an agreement to repay $500/month. After I got out I continued to pay the amount until I started going through a divorce (took 2 years). I talked with Uncle Sam about the hardship and they reduced the payment for a year (which I made). At the end of 12 months, the payment went back up, but I still could not afford it due to the divorce.
I asked to continue the lower payment and it was declined.Actually sent my check back and sid pay the $500.
My situation didn't (and hasn't got much better) and I quit paying ... that was nearly 3 years ago.
A provate collection agency contacted me and said the debt had been turned over. I checked with the Dept. of Treasurey and it's the legit.
The problem I'm having is that they want the money in full and are not so willing to provide a payment plan. I had to go to the bank this week and get a loan denial letter to send to them for them to even consider a payment plan. I haven't sent it yet, I just got the letter.
The kicker is, that my balance before they got involved was $18K. With their penalities, interest etc.. It's back up to nearly $30k. And they are charging about $175 a month in charges in penalities.
My question is, what can I do? I can get a loan for $15K and that's about it. Any more and I'm over extended. If I could get them to budge on the balance, it's doablle. But they won't work with me.
I'm in Maryland. The collection agency is in California. I'm tired of hearing that "I'm refusing to pay" or "My manger says we'll have to move your case forward". The bottom line is I cannot do what they want me to do.
Any help would be appreciated.
Here's some other info if it helps.
Besides the debt in question, I have a boat payment and a mortgage and no euity in either. I paid off my credit cards years ago and all of my other bills.
Go to your local IRS office and see what they say. You may be ab
Go to your local IRS office and see what they say. You may be able to get on CNC (currently not collectable)
Hi gair69, Send them a hardship letter by Certified Mail, det
Hi gair69,
Send them a hardship letter by Certified Mail, detailing your financial troubles and asking for a more reasonable payment plan and requesting an end to the highly unreasonable fees. Send the letter both to the original government agency you owe the debt to, AND the collection agency. Strongly request to work directly with the government on this one.
The collector seems to be confused with the original amount and the remaining amount. Also request validation on that.
But, the original story is very interesting. Did you report this overpayment? Did you even notice it? How did you not notice it? That is a rather large amount. It is probably fortunate that they have not prosecuted you for fraud. Just because they didn't catch it doesn't leave you off the hook with this one.
But then again, since it was "a period of years" involved perhaps you have a case to have the rest of the debt forgiven. In all probability you should let this one go to court and defend yourself.
Good luck, and I hope everything works out for you.
chrys
Hi gair69, I am replying to your quick message on my page.
Hi gair69,
I am replying to your quick message on my page.
Hmmmm. Well, this info changes a lot. IMO, they should forgive much of it - you took all responsible steps, even requesting an audit! The fact they they said it was right *should* be a de facto raise!
Now I *really* think you should go to court on this one. I'd be willing to bet that the courts find in your favor.
True story: my uncle was getting free phone service for more than 2 years. He made a lot of long distance calls on it, so he told the phone company. He wrote letters requesting investigation. The phone co. insisted everything was alright. Then one day out of the blue, they send him a bill for the 2+ years of phone service which, of course, he refused to pay. He had his attorney write a letter cc: the FCC with his documentation and they were forced to write it all off without harm to his credit.
That is NOT FAIR that you should have to go through this, considering everything. It's adding insult to injury. It is THEIR fault. You DID aggressively seek corrective action. There has to be some precedent here, I will search around.
Wow. If they were to force you pay regardless, it would be proof that injustice and greed reigns.
I would fight this one tooth and nail....
chrys