Charged off 1099-c

[learningfrommymistakes]

Hello,

I have a charged off account on my report that will age off at the end of the year. I was thinking about doing a PFD to get it off sooner. Although I am not sure if it would even be possible since I received a 1099-c for it about 4 years ago and claimed it as taxable income on my tax return. Does anyone have any experience with this?

Any thoughts would be appreciated. Thanks.

[sjt]

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@learningfrommymistakes wrote:

Hello,

I have a charged off account on my report that will age off at the end of the year. I was thinking about doing a PFD to get it off sooner. Although I am not sure if it would even be possible since I received a 1099-c for it about 4 years ago and claimed it as taxable income on my tax return. Does anyone have any experience with this?

Any thoughts would be appreciated. Thanks.

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Was it from the original creditor or a collection agency and was it a credit card?

[RobertEG]

When they took and reported the charge-off, that did not excuse the debt.  It remained due, and they could continue to pursue full collection.

However, if they sent a 1099c, that is their statement that they have subsequently cancelled the debt. 

Being as there is no more debt, a pay for delete would not be appropriate.

Recourse would be to send them a good-will request for deletion of any negative reporting that remains in your credit report.

That may be a tough sell, as they have taken a loss on the debt.  That may not foster an atmosphere of good-will, but give it a go!

[sjt]

What if someone wanted to repay a debt was 1099C. Would the creditor even accept it because and can they "reverse" a 1099C

[RobertEG]

I dont know how they would include it in their accounting ledger as a received asset with no associated buinsess transaction related to its receipt.

Since they previously charge-off the debt and thus claimed a tax writeoff as a non-receivable asset, they would most likely have some re-accounting to do with IRS if it therafter became a recieved asset. 

Possibly as a charitable donation not associated with the prior debt?

[learningfrommymistakes]

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@sjt wrote:

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@learningfrommymistakes wrote:

Hello,

I have a charged off account on my report that will age off at the end of the year. I was thinking about doing a PFD to get it off sooner. Although I am not sure if it would even be possible since I received a 1099-c for it about 4 years ago and claimed it as taxable income on my tax return. Does anyone have any experience with this?

Any thoughts would be appreciated. Thanks.

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Was it from the original creditor or a collection agency and was it a credit card?

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Yes it was the OC for a credit card.

[learningfrommymistakes]

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@RobertEG wrote:

When they took and reported the charge-off, that did not excuse the debt.  It remained due, and they could continue to pursue full collection.

However, if they sent a 1099c, that is their statement that they have subsequently cancelled the debt. 

Being as there is no more debt, a pay for delete would not be appropriate.

Recourse would be to send them a good-will request for deletion of any negative reporting that remains in your credit report.

That may be a tough sell, as they have taken a loss on the debt.  That may not foster an atmosphere of good-will, but give it a go!

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Thank you GW letter it will be. I have a few of those to write up so might as well add them to the list. Thank you