PFD = 1099??

[Anonymous]

okay, new here trying to figure out the acronyms, got some but  not all so please spell out after in your response so I am not more confused...lol

I have been reading the forums and am wondering about PFD's. If I were to settle for more than $600. on this account would I need to file a 1099 next year or does that only apply in other areas?

Also, I read that if you try too hard to fix your rating too quickly it can hurt your score? I don't get it, how could it hurt it?

[Anonymous]

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s_renee_a wrote:

okay, new here trying to figure out the acronyms, got some but  not all so please spell out after in your response so I am not more confused...lol

I have been reading the forums and am wondering about PFD's. If I were to settle for more than $600. on this account would I need to file a 1099 next year or does that only apply in other areas?

Also, I read that if you try too hard to fix your rating too quickly it can hurt your score? I don't get it, how could it hurt it?

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PFD=Pay For Delete, and means that if they agree, they will delete the account from the CRA(credit reporting agencies) upon payment. You can offer to PIF(pay in full) or pay a certain percentage.

1099 is what you get when a creditor cancels more than $600 or more of debt.

http://www.irs.gov/instructions/i1099ac/index.html

[llecs]

The CA would file the 1099, not you. I believe it is a 1099-C or a 1099 for the Forgiveness of a Debt. A copy is given to the IRS and you have to pick it up as income on your 1040 tax return. Basically the OC or CA and the IRS sees any forgiveness of a debt as income. Therefore you have to pay taxes on it. The $600 figure is a threshold set by the IRS for all MISC income. Not all CAs or OCs take the time to file 1099-Cs.

I raised my score over 100 points in my first month for EX and TU. I didn't get hurt.

[socolisa9]

so... if a creditor files a 1099, can the debt still be collected? i did get a 1099 2 years ago and it is being reported on my CR by a CA........any advise?

[Anonymous]

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socolisa9 wrote:

so... if a creditor files a 1099, can the debt still be collected? i did get a 1099 2 years ago and it is being reported on my CR by a CA........any advise?

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Yes it can still be collected on.