Dear Harry: I am desperately in need of your help! I have a bank cashier's check issued to me back in 1984. I can't remember why I did this. Over the years, I have called at least once a year asking whether or not I had to have it reissued, and each time I called, I was told it was not necessary. The latest call was in 2006. Last year, I needed the money to pay some medical bills, so I went to the bank to get my money. The teller and the branch manager told me that the check was too old. They said that they did not have the money, and they suggested that I call the state's Unclaimed Money Department (or some similar name). The state did nothing. The bank told me just to forget it. How can I do this? The check is for $19,000. That isn't pigeon droppings! Why did they not notify me that the check was stale when I called? I always get notified when a C.D. matures. I wrote to the president of the bank who wrote back that it was nice doing business with me, but there was nothing more they could do. The state insists that they never got the money. Where do I go from here?

What Harry says: This is a bank problem. Before you take the ultimate step of getting a lawyer, let's try two more shots. This check is a direct obligation of the bank. It has nothing to do with the source of the money. It should have appeared as an outstanding check of the bank every time it reconciled its balance. At some point, it disappeared. That could only have occurred if the check was cashed, the money went to the state, or the bank took the money. Neither the state nor the bank has any record of it going to Harrisburg. You have the check, so it wasn't cashed. The only possible conclusion is that the bank wrote off the amount to some income account. It's very unlikely that an employee stole it. First, try the Department of Banking at 1-800-pabanks. If that doesn't do it, contact your state representative and state senator. Good luck!

Dear Harry: I have just undergone some very expensive medical treatment. This will force me to take some money out of my IRA. The trouble is that I'm only 48, and I was told that an early withdrawal will get me hit for a 10 percent penalty. I'm really in tight financial straits, Harry, and this will really hit me hard. Tell me that I won't have to pay the penalty. Is there some exception for the income tax for my situation?

What Harry says: There's good news and bad news. The good news is that there's no penalty if money is withdrawn to pay for medical expenses that are normally tax-deductible. The bad news is that the withdrawal is taxable as regular income. However, the tax deduction for medical expenses will mostly offset the additional income. More important: Let's hope the treatment was a success!

Dear Harry: I understand that the FICO credit score is the standard for the industry. Since the problems with credit are so far-flung, I am concerned about a report that I heard about a tightening of credit. I'm just getting to the point where my score is recovering from a little bad history I had back in 2001, and I hope this new tightening won't set me back a step or two. Can you tell me what I have to do to keep myself ahead of the game?

What Harry says: You don't have to do anything except keep up what you're doing up to now. What's happening is that the scoring companies are increasing their sources for evaluating credit. FICO is looking at their usual sources, and they have added a look at rent, utility, phone, cable, and Internet payment histories. Some of the other scorers are also looking at Internet purchases, tax liens, and criminal records. The scoring is the same with 850 as the ideal score. If you stay above 700, you're in good shape.

Dear Harry: Back in 2000, I purchased a car from out of state for $18,500. Since it was a used car, I decided to declare its value without a receipt. In order to save taxes, I declared its value at $10,000. A few months later, I got a letter from the state asking for a receipt from the seller. I did that and got charged for the shortfall plus a penalty and interest. The state placed a judgment against me, and I immediately paid the amount due. My check bounced, and the state hit me with another judgment for the same amount. I paid the bill with a good check this time. Last October, I got a call from a collection agency stating that I still owed $67 on the account. I was worried about my credit, so I just paid it in full. I now have three judgments for the same account in my records. My credit report is down the drain, and I just can't get new credit. Isn't there some way I can get them to report this as one item?

What Harry says: You're the only one who got it wrong. You tried a little tax evasion, and you issued a bad check. Your credit report is technically accurate, but it doesn't give the full story. Since you have been turned down for credit, the creditor reported to you the name of the agency that issued the bad report. You are entitled to make a short statement to be added to your report explaining the situation. Under the circumstances, I'm not certain that it will do very much to improve your standing. Your tax fraud is probably more damaging than the judgments.

Dear Harry: I have been employed in a pretty good job, but I think I want to purchase a business. To get the money, I'm going to sell stock I own in my employer and take a substantial amount out of my 401(k) plan. What is the time frame for me to invest the money, and what are the tax implications?

What Harry says: I'm not certain what you are referring to when you say "time frame." You will have to pay a tax on any amount taken from the 401(k) regardless of whether you use it to invest in a business. There will also be a penalty if you're not yet 55. The capital gain on the sale of the stock will also be taxed, but at the lower capital gain rate if you held it for longer than one year. Again, this is regardless of what you do with the money. The time lapse between these moves and your investment does not enter into it. In order to avoid the early distribution penalty from the 401(k) (when you're not yet 55), consider borrowing from the plan with a scheduled payback period. You can work out the details with your custodian.

Dear Harry: About five years ago, you told me that I could not afford the house I was considering buying. You warned me that it wasn't just the house, but the neighborhood that was beyond my means. I was naive and very anxious to show that I was successful, so I allowed myself to be talked into a 100 percent mortgage. Now, a neighbor just sold his house for $30,000 less than my mortgage balance. I'm really under water. However, I can still meet my mortgage payment. Thank God that I did listen to your insistence on a fixed-rate deal. I really feel trapped. Should I let the mortgage company just take the house and move elsewhere? I promise to do what you suggest.

What Harry says: If you default on this mortgage, the deficiency (the $30,000) will follow you. You'll have a tough time getting a new mortgage, and your credit will take a huge hit. You might even find that landlords will hesitate to rent to you. My vote is to stay where you are and consider your payments as rent. With your fixed-rate mortgage, you'll eventually own the house clear. And the crisis won't last forever. *

Write Harry Gross c/o the Daily News, Box 7788, Philadelphia, PA 19101. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.