1099-c and repo

[Lynn37]

I did post in the credit forum, But I wanted to post my question here.

 

Back story,

 

DH got a bike in 2004, he got sick, fell behind on payments. When he was able we started sending payments to "catch up" Honda sent the payments back. Every single one. After a few rounds of sending payments, and getting them back from Honda, DH stopped sending them. It was clear they did not want the money. They did try to repo once, But we were not home. As far as I know, The never came back. They sent a 1099-c, we wrote it off on our 07 taxes. Never heard from Honda or any one else.

 

Last week they repo the bike. Now from what I understand the issue of a 1099-c does not remove the right to repo. They did send the letter for a deficiency within 10 days as they should under state law.

 

I was told a 1099-c cannot be generally cannot be recalled, Although I have read online it has been.

 

BTW the 1099-c was for the entire amount of the loan. not a dime less or more.

I still have the 1099-c, and the checks Honda sent back, We never cashed them.

 

Do I just wait for the sale? and does the issue of the 1099-c before a repo says No debt owed?

 

I am just looking for the best way to handle this issue.

[MarvBear]

bump.

[Seabee]

I'm curious about what you mean by 'wrote it off' on your 2007 taxes. Normally people say the wrote something off when the deducted it, but the 1099c would be additional income unless you were insolvent and could exclude that income. Just want to be sure you correctly reported the 1099c.

[Lynn37]

I'm curious about what you mean by 'wrote it off' on your 2007 taxes. Normally people say the wrote something off when the deducted it, but the 1099c would be additional income unless you were insolvent and could exclude that income. Just want to be sure you correctly reported the 1099c.

 

 

Yes we added to our income, sorry. We were not insolvent.

 

Since I really did not rules regarding a 1099-c, I took everything to the IRS.