Citibank settlement almost paid but...

I would get proof of this agreement first that you said you had with them, cause you can pay them off, but without proof they can ask for more and how can you proof that you do not owe more, do you see what I mean. Send them a debt validation letter and send it certified mail with a return reciept, if it is not to late, and that way they have to send you proof within 30 days I beleive. Start with this first before you worry about your credit file.

If I am wrong with this info. someone will be along soon to correct it, but I think I am right. You have come to the right place for help.

thanks,
Luke

i have two more payments with them so it doesnt make sense to me to demand a letter at this point or send a debt validation but I already knew i owed this money since it was recent.

the only thing i can think of that will somewhat protect me is the 1099c form but that can take up to 3 years to get and hopefully they will go through with it.

You may know what you owe but do you have the origanal debt letter, bill or invoice, something with the amount you owed, that way you can take all the recipets you have as proof that you paid when you make the last of the 2 payments to go. And, I would still send a letter asking them for proof of what you paid. You can get a "Ammoration Payment Schedule" that prints out all of the payments that you have made within the 10 months or you can ask for one when you send in the last payment and send that request certifed mail with a return reciept request. You have to do something. About the 1099c tax form, sorry I am not familar with that. I would also reccommened that you click on the "free consultation" button that is to the right of this post, they know all about that stuff.

thanks,
Luke

I googled the 1099c, it is a forgiveness form that the creditor must file with the irs by law. You will be required to pay the taxes on the forgiven amount. Once you pay those taxes there is no going back for the creditor. That is my understanding on it anyway, google it and see what you think. I don't think you need to be worried about it, just be aware that you will be recieving it and expect to pay it, it is almost considered income or profit, it is my understanding that anything over $600 has to be filed.

Would that be the end of your relationship with Citibank, if so, maybe that would be the best thing to do in the end is to file your 1099c, pay what you have to (with the IRS they maybe able to set up a payment plan with you for about 3 months), and then be done with it. But still, I think you still need some sort of form that says what you have paid so for and in the end.


good luck,
Luke

If they won't send you anything in writing, I would write them! You don't need a validation letter- you have been paying, acknowledged the debt is yours, and have only two payments left.

I have sent some of mine a letter stating that this is the next to the last payment according to our agreement of settled amount xxx. Then I sent the last payment with another payment saying this is the last payment per our settlement agreement on such and such date for xx amount. As you have stated previously, I will be expecting an updae on my credit report.

Be sure you make copies of everything, send money orders, and send all correspondence certified, return receipt..Good Luck-keep us posted..KAren :D

Also, be aware that they will either put Settled for Less than Owed, or something to that nature on your account.

Also, cant you wirte on your last check on the back where they sign to cash it something like this under the line " by signing this you agree that this said debt is paid in full"? I heard of people doing that and it worked.

these are good ideas, thanks.

I believe the 1099c will offially close it up but it can take up to 3 years for them to issue this. I've spoken to several people on my account and they've given me the same information and they've seem helpful and nice except that it seems sending letters are not part of there procedure.

as long as they update my account like they are supposed to, i can use my updated credit report as proof. i am just wondering how Citibank works and if they stick to their word and not pull anything.

oops sorry that was my post as guest, i forgot to login.

I would still reccomend that you click on the "free consultation" button that is just to the right of this post, they are very smart about these things there, just give them a chance please.

all the best,
Luke

I am not yet clear about the relation between debt payment and IRS. I did settle with two collections this year. They sent me release letter but nothing else. Am I supposed to request for 1099-c. It is obviously not income, but expense if I have to file it to my tax...still have to pay tax on it???

Forgiven debt is other income, and you are taxed on it.

It is my understanding that anything over $600 has to be reported, it is the law, so as long as it stays under $600 you should be ok, that would be $600 per bill. If you google the form, it breaks it down in the directions.

The companies actually report this as a lose, so you have to report it as a gain.

Quote:

One of the settlement companies told me that Citibank would never settle first but would settle once they seen others had. He told me that that would be one that we could settle ourselves and wouldn't even be picked up into their program.

This is a company that is inexperienced. If a company does not know how to deal with Citibank then you want a company with more experience. Citibank will settle.

All creditors are required to mail these to the IRS; however, you can claim that you were/are insolvent and won't have to pay any tax.

Thanks, Guest. That is good advice. I have been looking at another couple of companies and will probably go with Superior Debt. They seem to have the best going for them. It's all so new and scary.

Citibank gave my two accounts totalling about 25000.00 to a law firm and they have a civil suit against me.
I am enrolled in Square One Debt settlement now which is doing NOTHING for me!