Author Topic: Can they still try to collect after they issue a 1099-C ?  (Read 1734 times)

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HeadsUp

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Can they still try to collect after they issue a 1099-C ?
« on: February 13, 2009 04:27:58 PM »
The original creditor, Chase Visa, recently sent a 1099-C for the entire amount of the debt plus interest, late fees, etc.

Is that the end of that debt?

Can they sell it to a junk debt buyer?

Can a collection agency try to collect it?

If they tried to file a lawsuit over it, would the 1099-C be a defense against a lawsuit if I showed up in court and handed that to the judge?
Finally a collector admits it...

"The reality is that there are people who can't pay and the job of an agency in my opinion is to separate those who can and those who cant and to not waste resources and efforts on those who cant." -- Dr. Evil.

All this nonsense about aggressive judgment enforcement against someone with no assets is just that-- utter nonsense.

http://www.debtorboards.com/index.php?topic=13309.msg100303#msg100303

TX Debt Atty

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Re: Can they still try to collect after they issue a 1099-C ?
« Reply #1 on: February 13, 2009 04:52:50 PM »
The 1099-c is required to be filed by the Internal Revenue Code and in no way impedes the creditor's right to attempt to collect, sell, litigate, etc. the debt.
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HeadsUp

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Re: Can they still try to collect after they issue a 1099-C ?
« Reply #2 on: February 13, 2009 08:44:24 PM »
The 1099-c is required to be filed by the Internal Revenue Code and in no way impedes the creditor's right to attempt to collect, sell, litigate, etc. the debt.

Well, that doesn't seem fair.  If IRS can treat it as income, and yet the debtor still owes it, then to be fair, all mortgages and all credit card transactions should be viewed as income by the IRS and everyone who gets a mortgage or has a credit card balance should have to pay taxes on the full amount of the debt as if they were gifts and not loans.

It would seem like a very hard group of people to collect from for the IRS-- debtors who can't pay their credit card debts-- to the point where even the creditor declares it uncollectable.  I somehow doubt that the IRS will have an easy time collecting the taxes either.

Fortunately, insolvency is something which can easily be claimed in this case.
Finally a collector admits it...

"The reality is that there are people who can't pay and the job of an agency in my opinion is to separate those who can and those who cant and to not waste resources and efforts on those who cant." -- Dr. Evil.

All this nonsense about aggressive judgment enforcement against someone with no assets is just that-- utter nonsense.

http://www.debtorboards.com/index.php?topic=13309.msg100303#msg100303

CleaningUp

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Re: Can they still try to collect after they issue a 1099-C ?
« Reply #3 on: February 13, 2009 09:00:39 PM »

Well, that doesn't seem fair....


"Fair" is not necessarily a term that fits well with civil or tax law.


tallen30

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Re: Can they still try to collect after they issue a 1099-C ?
« Reply #4 on: February 13, 2009 10:44:14 PM »
I also received a 1099-c chase bank. The funny thing is 2 years ago I received a letter from them deeming this debt as fraudulent. They are refusing to amend the 1099-c. What should I do?  You know I am just thankful that I still have the letter...you would think that after 2 years when something is sd and done they would leave it alone...Kinda chicken of them to try to push off on my to be responsible for....

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Re: Can they still try to collect after they issue a 1099-C ?
« Reply #5 on: February 14, 2009 04:42:09 AM »
Your question, tallen30, really is:

"Is the taxpayer responsible for paying tax on imputed income as evinced by a 1099-C if such debt was the result of fraud (I.D. Theft) by a third-party not the taxpayer?"

Good question.  Can someone answer this one?
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