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Vintagephone

OC canceled my debt and sent me a 1099. Should it now be deleted

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OC canceled my debt and sent me a 1099 even stating that the debt was canceled. Since the debt is canceled, it isn't owed, but it's reporting as charged off for the full amount. Does this seem like good grounds to get it deleted?

 

 

ETA: NM found my answer. Sorry.

Edited by Vintagephone

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OC canceled my debt and sent me a 1099 even stating that the debt was canceled. Since the debt is canceled, it isn't owed, but it's reporting as charged off for the full amount. Does this seem like good grounds to get it deleted?

 

 

ETA: NM found my answer. Sorry.

 

What was the answer? I couldn't find it. I don't know how someone can send a 1099 and report it is income and still claim a debt is owed, but apparently they do. I've got one that's still reporting the balance and credit limit.

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OC canceled my debt and sent me a 1099 even stating that the debt was canceled. Since the debt is canceled, it isn't owed, but it's reporting as charged off for the full amount. Does this seem like good grounds to get it deleted?

 

 

ETA: NM found my answer. Sorry.

What was the answer? I couldn't find it. I don't know how someone can send a 1099 and report it is income and still claim a debt is owed, but apparently they do. I've got one that's still reporting the balance and credit limit.

The answer is no.

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I kept getting sued by an OC who was the lender for a car I was the co-signer on that got repoed years ago. They sued me THREE times and I fought them off each and every time. Finally in the mail one day I got a 1099 and three days later the trade-line was deleted from all my CR's

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I kept getting sued by an OC who was the lender for a car I was the co-signer on that got repoed years ago. They sued me THREE times and I fought them off each and every time. Finally in the mail one day I got a 1099 and three days later the trade-line was deleted from all my CR's

How did you fight the suits?

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I kept getting sued by an OC who was the lender for a car I was the co-signer on that got repoed years ago. They sued me THREE times and I fought them off each and every time. Finally in the mail one day I got a 1099 and three days later the trade-line was deleted from all my CR's

 

How did you fight the suits?

 

 

The best way to fight ANY lawsuit is to just respond to it.

 

It is very simple. Copy the header for the lawsuit just like theirs.

 

Then for each paragraph (1, 2, 3, 4, etc) for the entire lawsuit, you either admit or deny. If they state that the defendant's name is your name, then you write, "The defendant admits paragraph 2", etc.

 

For most of the response, you will write stuff like:

 

" Paragraph 8, the defendant does not have enough information to admit or deny the allegations, therefore the defendant denies." (or similar language)

" Paragraph 9, the defendant does not have enough information to admit or deny the allegations, therefore the defendant denies."

etc.

 

After you finish answering their paragraphs, you can add another section for counterclaims (FDCPA and FCRA, Consumer Protection Act, Unfair Business Practices, etc).

That really shocks them if you are pro se.

 

If you do that basic response, and there are templates online to help you, then most lawsuits from a creditor will get dropped. You have made the lawsuit more expensive than it is worth. Even if they are correct and you owe the money, you have made the entire process uneconomical for them. Spending $15,000 in legal fees to chase you over a $10,000 dispute .... doesn't make sense. Just a waste of time and money.

Edited by RocketGoBoom

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Receiving a 1099 does not mean they need to stop reporting though.

 

Thanks. Just doesn't make sense to me. You forgive a debt. I pay income tax on it. How does it still exist?

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Receiving a 1099 does not mean they need to stop reporting though.

 

Thanks. Just doesn't make sense to me. You forgive a debt. I pay income tax on it. How does it still exist?

 

 

"Forgiving" a debt is only one of several categories that require a creditor to file a 1099-C. There's a checkbox on the 1099-C that lists the actual reason. It will almost never be that the debt was forgiven. They can decide it isn't worth their time to actively pursue it or they may not have done anything other than send dunning letters for a few years. Both of those also require a 1099-C. The debt still exists and can be reported. Another thing that requires issuing a 1099-C is a court judgment that the debit is out of SOL.

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You can also reject a 1099-C.

 

Just because someone sends you a 1099-C without your permission, that doesn't mean you have to accept it and pay taxes on it.

 

There is an IRS form to dispute a 1099-C. (Form 4598)

 

Also, you could demand that they retract it because you disagree with the premise that you owe them money for them to forgive and you disagree with the premise that you should pay any taxes. I have successfully gotten a 1099-C withdrawn by threatening to sue them for the amount I would owe in taxes.

 

Just because they send your a 1099 doesn't mean that it is over and you have no options.

 

There is a place on the tax return where you can minus off the 1099-C income and add a footnote, "erroneous 1099-C". It happens quite often. List it, then minus it off.

Edited by RocketGoBoom

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