Author Topic: Two Conflicting 1099-C Forms From BofA  (Read 5149 times)

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ripley

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Two Conflicting 1099-C Forms From BofA
« on: March 16, 2013 12:03:14 PM »
I received two 1099-C letters from Bank of America on the same day.  One stated amount discharged and "borrower was personally liable for repayment of debt" and my name in Box 5. The second one said Corrected as 01/04/13. "2012--1099-C, CANCELLATION OF DEBT.  Except this corrected letter in Box 5 is: "Borrower was not personally liable for repayment of debt" and my name. Total amount of debt discharged .00. 

I called the number listed on the form to verify which was valid and according to them, the corrected one (the one that said I was not personally liable) was correct.

I have two judgments. One from BofA and one from Cap1.  BofA from 2008 and Cap1 from 2007. 

Until I received the 1099-C forms, I heard nothing from BofA. Last week I received a letter from the Northland Group Inc. CA for BofA. It also said in the letter that "this office will obtain verification of the debt or obtain a copy of a judgement and mail you a copy of such judgement or verification" if disputed.

FWIW, I live in Missouri.  I did a forum search and from what I have gathered, the Corrected 1099-C does not release me from the debt. Is that correct? Should this question be posed in a different section of the forum. 

Thanks in advance.


Flyingifr

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #1 on: March 16, 2013 12:07:40 PM »
The corrected one supersedes the other one. Throw the uncorrected one out.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

ripley

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #2 on: March 16, 2013 12:26:55 PM »
Thanks, but the main gist of my question is am I still liable since the corrected one states cancellation of debt and that borrower was not personally liable for repayment of debt? 

I'm confused. If it states I am not personally liable can I just send a copy to the CA? Can I use it to have the judgement removed?

Flyingifr

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #3 on: March 16, 2013 12:31:17 PM »
Thanks, but the main gist of my question is am I still liable since the corrected one states cancellation of debt and that borrower was not personally liable for repayment of debt? 

I'm confused. If it states I am not personally liable can I just send a copy to the CA? Can I use it to have the judgement removed?

Yes, you are responsible for paying the taxes on the amount of debt discharged - in this case $0.00

You use the 1099C as a defense against any attempts to collect the debt - you have the OC's affirmation that it is not your debt and that you owe nothing.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

ripley

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #4 on: March 16, 2013 12:44:59 PM »
Thanks, that helps. But can't the CA just get a copy of the judgement (as their letter indicates they would) and still pursue it? I guess I can just send them a copy of it. 

kevinmanheim

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #5 on: March 16, 2013 12:56:38 PM »
Thanks, that helps. But can't the CA just get a copy of the judgement (as their letter indicates they would) and still pursue it? I guess I can just send them a copy of it.
Check your court rules. I would figure out how to file to vacate the judgment.

The plaintiff has now told you the debt is discharged.

ripley

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #6 on: March 16, 2013 01:06:16 PM »
I was thinking along those lines as well.  I now need to figure out how to frame it and get heard. 


kevinmanheim

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #7 on: March 16, 2013 01:11:14 PM »
One way would be to sue the next CA who contacts you about the debt.

Would they want to risk a federal court opinion on a FDCPA violation related to this issue?

I think no.

BoA is up to something with these corrected 1099-C. It's probably related to the feds investigating the big OCs over their debt sales.

There's a good chance that the party who sued you and obtained the judgment wasn't BoA or FIA, but instead a JDB law firm pretending to be the OC.

ripley

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #8 on: March 16, 2013 01:46:10 PM »
No, it was them.  I just looked it up and according to Missouri case.net  is says: FIA CARD SERVICES NA , Plaintiff   

As far as this new CA letter, I will send them a copy along with a copy of their letter via certified mail and see what their response is. 

I have read that the older the judgement is, the harder it is to vacate. However, this 1099 is new. I will call the court clerks on Monday (not very helpful here) and find out if there is a form to request it be vacated.

kevinmanheim

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Re: Two Conflicting 1099-C Forms From BofA
« Reply #9 on: March 16, 2013 06:38:21 PM »
No, it was them.  I just looked it up and according to Missouri case.net  is says: FIA CARD SERVICES NA , Plaintiff 
What it says, and who actually sued, are two different things.

Plenty of collection attorneys file in the name of the OC, when they are really suing for and collecting for a JDB. That JDB is often owned by the attorney's firm.

ripley

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Re: Two Conflicting 1099-C Forms From BofA-Update
« Reply #10 on: March 28, 2013 06:21:12 PM »
I just wanted to follow-up with my original post. 

I sent a certified letter to CA yesterday. It included a copy of their collection letter, a copy of 1099-C that states "borrower was not personally liable for repayment of debt". At the top of the letter I included the last 4 of the account (CC) number. In the letter I also stated:

"This letter is in response to your correspondence dated x/x/13 which I received regarding the above matter.  A copy of that correspondence is attached.
Also attached is a corrected copy dated x/x/13 of the 1099-C sent from FIA Card Services. I highlighted the Box 5 section that states, “Borrower was not personally liable for repayment of debt”.

I dispute this account.

All calls are inconvenient at any time to any personal phone number.  Any implied permission to call any personal phone number is hereby revoked.  Please communicate via U.S. mail.

Sent via Certified Mail "

I hand wrote the certified mail number on the letter and sent it.  I did not ask them to validate it, just disputed it.

I just called the court division where the judgement was filed and the clerk said she could not answer any questions since she is not an attorney. I asked how would I go about vacating a judgement, if there are any forms I need to file. Her response again was that she is not attorney, could lose her job and that's why there are attorneys and to call one.

So I am a bit stymied on this.  I cannot afford an attorney. 

« Last Edit: March 28, 2013 06:31:13 PM by ripley »

 

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