1099;s

I've heard that the amount of debt forgiven is considered income on your part...so you will definitely get the 1099 and will need to claim it on your taxes.

actually you should IMMEDIATELY DV the companies...they CAN'T claim a 1099 on unvalidated debt...it still has to be proven that it is your debt. Once the DV is out, if they still file the 1099 you immediately contact the IRS and inform them that the debt is disputed. They take a dim view of the CA's using them as a collection tool. And trust me, that is all it is....yes, the law requires forgiven debt to be claimed, but it still has to be your debt in the first place that they can prove. CAs just use this to either scare a payment out of you, or to get some money on an noncollectable debt. Don't let them get away with this easily.

i guess i'm slow....but i don't see the illegality of yellin & goldner....if you can spell it out for me, it could be very helpful, since they have filed a summons against me, claiming Bank of America (FIA Card Services) as the plaintiff. and actually, Y&G are the 2nd DCs - they got it from FJ Hanna & Assoc. who got it from BofA.
thx

I thought that a 1099c had to be sent within 12 months of the SOL date. Unless the states SOL is five-six years, then Bylane and Chase shouldn't be able to send 1099c to you.

Guest,

??

A 1099c is sent out when you Settle. The SOL *doesn't* forgive the debt, it just becomes a defense to drop a court case if they sue - or determines when the tradeline should disappear from your credit report.

And it has to be sent out the same fiscal year in which the recovery was reported in their profit-and-loss statement, which is the same year (well, technically, the beginning of the next year).


pisces316,

Quote:

A 1099c can be sent after the collector receives no payment for 36 months. When the SOL ends, and the debt account has had no payments for 36 months, the collector can claim a loss and send a 1099c.

I have read this is how some debt buyers make money on unpaid accounts.