1099C debt cancellation and judjement

[iamrc]

I received a 1099 debt cancellation from Bank of America dated 12/31/2011...This is not an agreement or partially paid account to lower debt.

In 2008 BofA filed a judgement for same account in the same amount. I know and understand the filing of 1099 with the IRS. My question is what happens with the judgement now? is it cancelled? and how do I go about getting it removed?

 

I know from previous research that

 

This is from the Code of Federal Regulations

 

31 CFR § 903.5 Discharge of indebtedness; reporting requirements.

 

(a) Before discharging a delinquent debt (also referred to as a close out of the debt), agencies shall take all appropriate steps to collect the debt in accordance with 31 U.S.C. 3711(g), including, as applicable, administrative offset, tax refund offset, Federal salary offset, referral to Treasury, Treasury-designated debt collection centers or private collection contractors, credit bureau reporting, wage garnishment, litigation, and foreclosure. Discharge of indebtedness is distinct from termination or suspension of collection activity under part 903 of this title and is governed by the Internal Revenue Code. When collection action on a debt is suspended or terminated, the debt remains delinquent and further collection action may be pursued at a later date in accordance with the standards set forth in this chapter. When an agency discharges a debt in full or in part, further collection action is prohibited. Therefore, agencies should make the determination that collection action is no longer warranted before discharging a debt. Before discharging a debt, agencies must terminate debt collection action.

 

( Section 3711(i), title 31, United States Code, requires agencies to sell a delinquent nontax debt upon termination of collection action if the Secretary determines such a sale is in the best interests of the United States. Since the Discharge of a debt precludes any further collection action (including the sale of a delinquent debt), agencies may not Discharge a debt until the requirements of 31 U.S.C. 3711(i) have been met.

 

© Upon Discharge of an indebtedness, agencies must report the Discharge to the IRS in accordance with the requirements of 26 U.S.C. 6050P and 26 CFR 1.6050P–1. An agency may request Treasury or Treasury-designated debt collection centers to file such a Discharge report to the IRS on the agency’s behalf.

 

(d) When discharging a debt, agencies must request that litigation counsel release any liens of record securing the debt.

 

 

thanks in advance for any help

[Analysis]

Bump

[ICANHASMUNY?]

were they awarded the judgment and was it ever paid?

[ICANHASMUNY?]

I received a 1099 debt cancellation from Bank of America dated 12/31/2011...This is not an agreement or partially paid account to lower debt.

In 2008 BofA filed a judgement for same account in the same amount. I know and understand the filing of 1099 with the IRS. My question is what happens with the judgement now? is it cancelled? and how do I go about getting it removed?

 

I know from previous research that

 

This is from the Code of Federal Regulations

 

31 CFR § 903.5 Discharge of indebtedness; reporting requirements.

 

(a) Before discharging a delinquent debt (also referred to as a close out of the debt), agencies shall take all appropriate steps to collect the debt in accordance with 31 U.S.C. 3711(g), including, as applicable, administrative offset, tax refund offset, Federal salary offset, referral to Treasury, Treasury-designated debt collection centers or private collection contractors, credit bureau reporting, wage garnishment, litigation, and foreclosure. Discharge of indebtedness is distinct from termination or suspension of collection activity under part 903 of this title and is governed by the Internal Revenue Code. When collection action on a debt is suspended or terminated, the debt remains delinquent and further collection action may be pursued at a later date in accordance with the standards set forth in this chapter. When an agency discharges a debt in full or in part, further collection action is prohibited. Therefore, agencies should make the determination that collection action is no longer warranted before discharging a debt. Before discharging a debt, agencies must terminate debt collection action.

 

( Section 3711(i), title 31, United States Code, requires agencies to sell a delinquent nontax debt upon termination of collection action if the Secretary determines such a sale is in the best interests of the United States. Since the Discharge of a debt precludes any further collection action (including the sale of a delinquent debt), agencies may not Discharge a debt until the requirements of 31 U.S.C. 3711(i) have been met.

 

© Upon Discharge of an indebtedness, agencies must report the Discharge to the IRS in accordance with the requirements of 26 U.S.C. 6050P and 26 CFR 1.6050P–1. An agency may request Treasury or Treasury-designated debt collection centers to file such a Discharge report to the IRS on the agency's behalf.

 

(d) When discharging a debt, agencies must request that litigation counsel release any liens of record securing the debt.

 

 

thanks in advance for any help

 

title 31 only applies to goverment agencies, not banks.

[iamrc]

were they awarded the judgment and was it ever paid?

yes they were and no never paid

[ICANHASMUNY?]

I would lay low until your state SOL on Judgements has expired.

[iamrc]

okay found this at http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A%2C_Sec._1.6050P-1

 

from IRS

 

Facts and circumstances indicating that an indebtedness has not been discharged include the existence of a lien relating to the indebtedness against the debtor (to the extent of the value of the security), or the sale or packaging for sale of the indebtedness by the creditor; and

 

so according to this, if there is a judgement, they cannot file a 1099C ?

[ICANHASMUNY?]

what state are you in,

 

do you know if you wages can be garnished or liens put on your property or possessions siezed?

 

if you challenge the 1009C or the reporting of the judgement,

 

the bank can then locate you to execute the judgment.

 

or are you judgment proof?

 

can you calim insolvency for that year?

[iamrc]

what state are you in,

 

do you know if you wages can be garnished or liens put on your property or possessions siezed?

 

if you challenge the 1009C or the reporting of the judgement,

 

the bank can then locate you to execute the judgment.

 

or are you judgment proof?

 

can you calim insolvency for that year?

 

NC wages can't be garnished/ I have had the judgement since 2007/8. they have never tried collecting on it. The mortgage is not in our name. although we are on the deed, along with all our kids. I can c;aim insolvency this year with the 1099 C, so not worried about that. The bank has always known where we are. I already filled out forms that we could not pay, etc etc and that was years ago. I just want to know if 1099 cancels the judgement.