10-01-2012 04:46 PM
I was wonderinf if anyone has any advice about my bank of america charge off account.
The account was defaulted in 12/2008, and the balance was $4650.
Right now, it shows that the charge off balance is $4600 and past due $800. I'm not sure why the numbers are different, but we're trying to settle with them right now and i called and talked to a rep. and he said that they mailed us a 1099 form last year, which we never recieved, so if they wrote it off, shouldn't the balance be 0? i asked him if we paid taxes on that 1099 would the balance past due show 0 and he said no? he said we have to pay in full if we wanted it to show 0? ( So we have to pay taxes on it and still owe money to BOA?) If anyone has any info on what we should do, we would really appreciate it!
Sorry it's a little confusing, we thought they would just ofer us a settlement and we would apy it but this is so cufusing.
Thanks in advance.
10-01-2012 05:09 PM
If they did the 1099 it should read $0.
10-01-2012 05:18 PM
That's what i thought. That's why it's so confusing.
The rep said that the 1099-c was issued last year, we never got, and we have been living in same place for the last 2 years, so after we get a copy of it, do we file with 2012 taxes, or do we call irs and try to add it to last years taxes?
( also wanted to mention that we haven't made a payment on that account since DOFD of 12-2008, so do they just write it off without even asking us for payment?)
10-02-2012 01:35 AM
When a creditor charges-off debt, it does not in any way relieve the consumer obligation for the full debt, and does not preclude them from continuing to collect the full delinquent debt.
The "write-off" is within their accounting ledger, which shifts the debt from an unreceived asset to an uncollectible bad debt, thus decreasing their net assets.
At the time they took their internal accounting measure, the amount of the bad debt was apparently $4650, which is reportable as the amount charged-off.
If and when the uncollected debt balance is reduced, presumably by payments from the consumer, they must update the remaining balance in their reporting, but the original amount charged-off is retained in its own, separate code.
That is all standard. However, what becomes confusing to me is that you state you never made any payments, and yet their reporting of remaining balance somehow mysteriously declined to $800. So they apparently exclused $3850 somewhere along the way, and reported that fact to IRS, who wants taxes from someone on the entire debt. Erog, the 1099c seeking the taxes on the excused debt from you, the consumer.
That means, at least as I understand their actions, that they are still attempting to collect a remaining debt of only $800, not $4650.....so not surprising they will accept your offer.
If you were to pay $800, then their excusing of the remainder, as evidenced by their 1099c reporting, would mean it would be a payment in full, and not a settlement for less.
10-02-2012 04:06 PM
Thanks for the reply, so i talked to another rep. today and she will be sending us a copy of the 1099 so we can ammend our taxes from last year. She said they will not accept a payment, since the account has been written off, but if we wanted the charge off to show 0, we would need to pay in full, which i would prefer not to do since we are paying taxes on it now and it seems unfair..So it looks like the account on CRA will be showing a charge off balance of 4650 and past due amount of 800.
I do have some more concern, After we pay taxes on it, can they still legally come after for the balance? WA state law on open ended contracts is 3 years so i believe this debt is past SOL. And are we going to have any issues qualifying for a house since the Charge off still shows a balance or can we show the bank 1099 and it would be fine?
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.