Why SOL Should be a Last Resort in Fighting JDB Collections

[heavyjay]

Having his face appear on the $20 bill is a cruel irony given today's economic climate.

 

I've said this to countless people over the years and no one has ever gotten it.

[flacorps]

Having his face appear on the $20 bill is a cruel irony given today's economic climate.

 

I've said this to countless people over the years and no one has ever gotten it.

 

Using the Big G on "Andrew Jackson" and "Bankers" should give anyone the flavor of it.

[Kevin20]

To the original post:

 

Although the debtor can attach a form 982 to partially or wholly blunt the effect of the 1099-c, that form essentially requires that the debtor be entitled to file a CH7 BK in order to afford any relief.

 

Having already done my taxes but not mailed them in yet, it seemed to me that to claim exemption with a 982, one merely needed to have a negative net worth of magnitude greater than the value of the debt, at the moment prior to issuance of the 1099-C (ie, the canceled debt counts as a liability on your balance sheet).

 

(Exceptions noted on the form 982 are: the exclusion does not apply to any discharge that occurs in a title 11 case. Also does not apply to discharge of qualified principle residence debt, unless you have insolvency exclusion apply instead of the exclusion for qualified principle residence indebtedness.).

 

Am I missing something?

Edited February 17, 2008 by Kevin20

[Kevin20]

Having already done my taxes but not mailed them in yet, it seemed to me that to claim exemption with a 982, one merely needed to have a negative net worth of magnitude greater than the value of the debt, at the moment prior to issuance of the 1099-C (ie, the canceled debt counts as a liability on your balance sheet).

 

To which I'll add, it's suddenly much to your advantage to have some salamander JDB reporting wildly inflated balances owed on your credit report. Those are your liabilities.

 

By the way, documentation on all this is IRS form 982, IRS Pub 525, and IRS pub 908.