Author Topic: Can you be issued more than one 1099 for a forgiven debt?  (Read 7009 times)

0 Members and 1 Guest are viewing this topic.

Belle2004

  • Valued Member
  • Posts: 449
Can you be issued more than one 1099 for a forgiven debt?
« on: January 31, 2013 03:59:31 PM »
After having read several of these threads on the 1099's I still have a question.

Chase sent me a 1099 writing off just over 6K. The debt is only 2 years old. I am thinking they might have done this because just last month I called them and offered 15%. They refused and came back with too much of a counter so I said..."well...I guess we will just decide this in arbitration."

Makes me think they wrote me off and probably sold off the debt...haven't been able to confirm that just yet.

So my question is this...since Chase sent me a 1099 I should not expect any further collection activity from them...is that correct?

And when the JDB comes calling that they sold my debt to...can they legally try to collect this debt?
If so...they will not be able to send a second 1099 will they? Isn't it that only one 1099 can be issued for the debt?

And I know the JDB may try to sue, or collect...but won't they be in violation of the FDCPA, and are they allowed to collect on a debt that has been "forgiven"

Please help me figure this out!

Thank-you!

AXXEL

  • Valued Member
  • Posts: 1341
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #1 on: January 31, 2013 04:08:47 PM »

And I know the JDB may try to sue, or collect...but won't they be in violation of the FDCPA, and are they allowed to collect on a debt that has been "forgiven"

Thank-you!

Why wouldn't it be a violation of a misrepresentation of legal status of a debt?  1099c means it was cancelled.

Belle2004

  • Valued Member
  • Posts: 449
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #2 on: January 31, 2013 04:43:48 PM »
That's what I am thinking but I just wasn't sure.

Do the OC's go on to sell these debts knowing they have forgiven them? Wouldn't that  (or  shouldn't it) be illegal to do that?

I am just trying to figure out if this debt is a moot issue now since the OC has  written it off.

freedy

  • Valued Member
  • Posts: 830
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #3 on: January 31, 2013 04:50:59 PM »
My understanding is that once a 1099 is issued the debt has been cancelled . It cannot be collected on ,no further collections can be made.

AXXEL

  • Valued Member
  • Posts: 1341
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #4 on: January 31, 2013 04:51:58 PM »
That's what I am thinking but I just wasn't sure.

Do the OC's go on to sell these debts knowing they have forgiven them? Wouldn't that  (or  shouldn't it) be illegal to do that?


Perhaps, but you have no recourse against OC unless they breach an agreement that states they won't sell it off.

I've also settled with a couple OC's.  The scenario you describe could happen, but try not to worry about it.  I'm not going to.


Tony733

  • Valued Member
  • Posts: 53
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #5 on: January 31, 2013 05:03:08 PM »
C1 sent me 2 - 1099C for the same account and same amount (1 under business name with my SS number, 1 under my personal name with my SS number) for a IIB discharged account.

This could double their claim against my assets that have not yet closed on my BK.

It also messes up IRS form 982 for BK discharged amounts, making me having to include both totals.

Belle2004

  • Valued Member
  • Posts: 449
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #6 on: January 31, 2013 05:23:41 PM »
Thanks for the responses...here is what I am not quite grasping...if a 1099 is sent and the debt is forgiven...

why would a JBD buy such a debt? Wouldn't I be able to answer any lawsuit with "the jbd has no standing because the debt was forgiven and here is the 1099 to prove it?"


innocentme

  • Valued Member
  • Posts: 512
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #7 on: January 31, 2013 06:57:03 PM »
I have been reading up on this as I received 2 1099c from Chase yesterday, and wasn't sure if that meant that they were done.

While I have seen many references to it meaning that they have stopped all collection activity, I also saw case law saying that filing a 1099c doesn't mean that they have to stop collection activity. 

In that case, the judge said that they could file an amended 1099c and start collecting again.  This was in a case where the debtor got a settlement, and the creditors wanted to get their money from him.  The bankruptcy judge said that they could amend and restart collection. 

I'm confused. 

These debts are only about 18 months since DOFD, so I don't know if they are going to try to sell to a JDB or not.
I am not an attorney.  I just love to know my rights, and to defend them at all costs.  Even if that means going on the offensive.  I'm always nice, until I'm not.

WinningTheBattle2010

  • Valued Member
  • Posts: 697
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #8 on: January 31, 2013 07:10:45 PM »
I have read that:  If you receive a 1099C  it can only be for the amount of the original debt,  no interest or penalties added.

If they add to the original debt, you can fill out a fraud from with the IRS and stick it too the sender.

All of the  1099-C   I received have never Gone any farther for collection, all further collection stopped.

I am checking with the IRS on  BofA  sending out 2  of a 1099-C  on a forclosed home (1 was my name and SS, the other was for my deceased wife and her ss).  They sold the home for the balance of the note + over 40,000 in addes <Removed>.  Then they send out 1099-C 's  <removed>   I believe it to be fraud.  Of course who would expect a huge company like BofA to do that?? lol

Edited by Admin for language.  :tos:
« Last Edit: January 31, 2013 07:28:18 PM by Admin3496 »
I DONATE , do you?
I am not a lawyer, any/all information on my answers should be considered my thoughts only, Not Legal Advice.

DebtFreeCalifornian

  • Valued Member
  • Posts: 7
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #9 on: January 31, 2013 07:34:18 PM »
For Credit Cards, you can fight the 1099-c by notifying the IRS of the fraudulent 1099-c issued.

You also notify the bank of their fraudulent 1099-c.

The banks issue them to take a tax deduction, however the bank never "loaned" you money. Therefore the bank is committing tax fraud.

You just dispute it and file a copy of that dispute with your taxes.

I've known lots of people do this for the last seven years, and never has a problem with the IRS.

for more info on 1099-c you can check out www.creditcarddebtassociation.org


AXXEL

  • Valued Member
  • Posts: 1341
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #10 on: January 31, 2013 08:12:35 PM »
For Credit Cards, you can fight the 1099-c by notifying the IRS of the fraudulent 1099-c issued.



You just dispute it and file a copy of that dispute with your taxes.



Can you describe the "dispute"?  Is there a form for that?

silverzgirl

  • Valued Member
  • Posts: 3570
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #11 on: January 31, 2013 09:06:51 PM »
I don't bother disputing. I just 982ed them and blasted them off my tax returns. Problem solved.
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

AXXEL

  • Valued Member
  • Posts: 1341
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #12 on: January 31, 2013 09:08:59 PM »
I don't bother disputing. I just 982ed them and blasted them off my tax returns. Problem solved.

That's what I plan on doing.  I'm insolvent, and then some.  1215

silverzgirl

  • Valued Member
  • Posts: 3570
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #13 on: January 31, 2013 09:12:16 PM »
My liabilities were higher than my assets this year, and these were the last two alleged debts remaining.

Thank goodness I am pretty much done with this...now onto rebuilding.

Anyone who is pretty much insolvent would be foolish to dispute a known debt...just 982 that piece of paper into IRS oblivion and cover your six. Done.
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

TomNTex

  • Valued Member
  • Posts: 272
Re: Can you be issued more than one 1099 for a forgiven debt?
« Reply #14 on: January 31, 2013 10:52:30 PM »
My understanding is that once a 1099 is issued the debt has been cancelled . It cannot be collected on ,no further collections can be made.

Wrong! It s been shown in other forums that even after a 1099-C has been issued, they may still decided to come after you and collect. NO specific law has been shown to prove that they cannot do so. In fact, it's coming out now that JDB are attempting to collect after a 1099-C was issued years earlier. Do your research in some of the legal  and law type forum's.