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Showing results for tags 'We will no longer attempt to'.
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There's growing chatter here as of late about the flurry of 1099-c forms going out to (former) debtors. Before the threads go in a hundred different directions, I was hoping we could wrangle all the questions and answers into one thread or perhaps one of the board gurus can slap together a Master Thread. I ask this not only in the spirit of altruism (so that future generations can find a central repository for our knowledge and not go nuts as we all did in the past looking in 100 places for one answer to one question), but also for personal reasons... The gurus here helped me fix up my wife's and my credit years back (thanks again) so I moved on to helping the family. My brother's repair has been a thorn in my side for YEARS. It went well at first and I took care of everything EXCEPT two chargeoffs...I've been stuck on them for YEARS. I've tried everything (except paying, LOL) without any movement. Today, however...he got two of those 1099-c forms stating "We will no longer attempt to collect the unpaid debt on your account"--one from Chase and one from Citi. This, obviously, is something new and I want to figure out how to leverage it in my favor with regard to credit repair. In other words, any movement on the part of the creditor is good news--it's just a matter of figuring how to work it into a deletion. So...If I'm reading the other threads correctly (and please correct me if I am wrong): 1) The amount on the 1099-c must be factored into his income and taxes paid on it. In other words, if chase is 2k and citi is 1k, he's going to owe tax on 3k. Assuming federal tax to be around 30% for his current bracket, that would be about $900 which is great news as paying that would be a lot less than $3,000. 2) Furthermore, if he can prove he was insolvent at the time (he was), he will pay nothing 3) Any "Identifiable event code" other than "H" (his was "G") means that the debt was written off and not sold off. In other words, no CAs will be harrassing him (?). I don't know if that's all correct, I'm culling it from other answers in other threads. If not, please let me know. Anyway, this brings us to the big question vis-a-vis credit repair (this is the purpose of the Web site, after all): ARE THERE ANY NEW SUGGESTED STRATEGIES FOR REMOVING THE CHARGE-OFFS ASSOCIATED WITH THESE ACCOUNTS NOW THAT THE LENDERS HAVE OFFICIALLY WASHED THEIR HANDS (1099'D) OF THESE DEBTS? I see the angle here for the lenders--the banks are probably getting more of a net addition to their balance sheets by writing it off as bad debt since, in this day and age, collection agencies are bidding less and less for debt (especially small debt) and with any luck they will soon go the way of the dodo. In other words, the banks are doing it with the bottom line in mind, not to help people (even if they do so in a roundabout way). Anyway, the banks are minimizing loss on the debt and they are happy, does that mean (I'm assuming/hoping so) that they now could care less whether or not there is a CO on Joe Schmoes CR? In other words, will a deletion through a dispute--or, perhaps a Goodwill letter--be easier now? Any answers from experience, gut feelings, crystal ball-readings or jut plain educated guessing will be great for the discussion.