Discover Charge Off Date/Settlement

As per my knowledge, Discover charge off cards if a customer misses payments for 120 days or more. I think you talked to some rep. who is trying to make you start paying. Talk to some supervisor, if you can.

Actually we are over 150 days past due and no charge off??

For me it was 120 days but they would not call it a settlement because i had used the card in the last 12 months. they took off interest and penalties totaling almost $1900 and i will not get a 1099.

You will get a 1099....you got a settlement no matter which way they say it. They waived costs which they will write off.

1099 can only be based on principal amount waived

if the amount waived was interest/penalties/fees as stated...they legally cannot 1099 them...

Student loans waive interest and fees all the time and that is subject to 1099's...and they are federal debt.

Steve I have run into a few cc companies that wait until 210 days to charge off. If that is what they told your wife than it is probably so.

It's up to the creditor whether they send a 1099C. You can negotiate this as part of your settlement. If they do send you a 1099C, any portion of the amount forgiven that is interest, fees, or penalties will be listed separately. If this is personal debt where the interest would not have been deductible, it won't be counted as income - but you still have to put the info on your tax return.