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Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

[ Edited ]

guiness56 wrote:

Having a 1099 issued and the way they are reporting are two separate things. 

 

The inaccurate reporting would fall under the FCRA.  FDCPA is for 3rd party collection agencies.

 

Reaging is when the DoFD is changed.  It is illegal for any lender/'creditor to do that.  The only time it could legally be changed would be to bring your account current then become late again, thus having a new date of first delinquency.  That did not happen in your case.

 

The debt is cancelled due to the discharge.  Thal tradeline should be reporting as the others.


Even if a 1099C is issued since the OP is on fixed SSI income,  they should be able to prove they were insolvent at the time negating the issue.


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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

This is very true.  And is considered permanent and totally disabled.

 

 

Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
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Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

You're probably going to doubt me on this and I don't blame ya but believe it or not, proving that I was and am on SSDI (don't know if that makes a difference from SSI or not) is insufficient evidence to sustain a P&TD!!! Yes, you read correct - that despite ALL of the Dept of Ed & taxes & this & that - NONE talk to one another.

Logic would dictate that the FEDS would all have a data matching program but Lo and behold they don't. Well, that is true until your info is received and what YOU send in, but showing my SSDI statement, how much I get, etc is NOT grounds enough to prove disability as (lender) must make the decision. And yep all this is done by a totally separate process - doctor/physician had to get involved as well - and it's literally like applying for SS disability all over again. All that is different are the numbers and/or names on the forms.

It's the government and/or lenders - efficiency?? Ha!!

I sure wish that was as easy as producing the ssdi info and being done/overwith but it does nothing for this issue. If i missed something, let me nnow ehen you can as I'm not really sure what part you are referring to since the whole SSDI aspect of this has been fairly useless other than for showing I have no taxable income.

C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

What Shogun and I were discussing was that even if they issued a 1099-C for the forgiven student loans, your being on SSI could be used to prove insolvency.

 

Not that your receiving SSI proves disablity.

Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
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Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

That is what happens when I don't read and get into conversation not meant for me!! In my defense I'm on the mobile app version and can't see everything as I would on the web. Yes, lame excuse for not reading/paying attention!!

How/what would proving indigence/insolvency do? I'm going to assume that by using/proving such solves two things: first being indigent, cannot touch SSDI or SSI anyway, and the second thing it proves is the timeframe.

Whenever the disability onset date is, from that date (Mar 2009 I think) to the day I die, all the timeframes will correspond to me receiving SSDI & "proves" that not only was I disabled during the timeframe, but I was also receiving SSDI during the timeframe, automatically making me (since I have no other income source) have non-taxable or countable income. I don't meet the threshold for countable income so trying to collect upon it would never even be allowed on an unsecured debt - should I still not be able to get around the "not eligible for p&td from the start" problem.

Kinda like a backup plan? Sure don't want to lay my whole hand down before I see what else others have first :smileyhappy::smileyhappy::smileyhappy::smileyhappy:. Hopefully my no-sleep brain is interpreting correctly and if not I know one or both will set me straight LOLOL!!

Thanks again to both of you. My apologies for the misunderstanding too.

C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

What we were referring to was the to the forgiveness of the debt.  Any debt that is forgiven,  charged off, uncollectable, etc. over $600 can generate a 1099C which would then be included as income on your taxes.  But if you could prove you were insolvent, "which you should be able to do", you would not be liable for that added tax.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
0

Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

Wow I was WAYYYYY off base on that one!!!

Sorry about all the rambling above then.

This is still definitely good info to know as it was something that would eventually find its way to me!!!!

Thanks again you two.
N

C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

At your service...  :smileyhappy:

 

Your situation has caught my attention and I will be following it's progress so please keep us informed.  Thank you.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

I have been doing some research, and this may only apply to veterans in your situation, but, it seems the Dept of Ed rarely issues 1099-Cs for forgiven debt based on PT&D.  Could be because they know you only receive SSI and they cannot touch that.

Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
0

Re: DOFD/CO/SOL, 4 year discrepancy, & resurrection of cancelled debt

The amount of research you've done better not be ALOT!! While I appreciate every shred of it, I do not want to take up so much time and that goes for anyone! I can't thank you enough Guiness - you've really taken this matter seriously and by the horns.

More FYI on that 1099-C, I'm not lucky at all and they wasted no time sending it. Dept of Ed says oh well to $57K and this cancelation is almost short exactly what's owed on that unsecured one. I can't believe I did not see this before - then again I recently received it and didn't pay much attention as the letter that came with it indicated I may not be liable for some or all of the taxes for any given number of reasons.

Unfortunately, this also gives validation that the OC is not on here and this unsecured SL literally is being picked apart on what rules to apply and who benefits. Through the conditional period it was me; now the discharge occurs, rules have changed again, and the OC says its not included. They do not obey or "play by THAT rule" but had no problem letting the govt eat up all of the OC's other debts to pay them off via the P&TD. Whatever is more advantageous to them, despite all these changes, just kills me.

Given the fact this loans terms have changed more than 4 times over its life - twice due to law, once due to BK law, and again due to High Ed law. I'm grandfathered in one way but not in another. This loan is, in and of itself alone, is governed and contradicted by the same law(s) - grandfathering, BK non-dischargeability, and non-P&TD except if Pre-2005 but not unless filed before June 2010. As we all know by now, it's just another set of standards being flagrantly misused in order to go after me, get their $10k (now $14K), after waiting until AFTER its discharged via P&TD not to mention after the dept of ed pays this same OC.

Nutshell: they're wanting 100% and then some; out of the $57K paid to Sallie Mae, to cover the loans, then they let all this time lapse by using properly the conditional wait period all the while having never asking for a dime, all while laying low, and all while setting me up for what they're trying to do now.

Well sorry OC but after getting $57K and now you wanna try to go after a crippled, on SSDI, for an unsecured debt is just ridiculous. I'm the loser here for ever believing "silence" was a GOOD thing along with not one derog at all showing up for four years...

Anyway I'm sorry again for the troubles and I again thank you for your continued support. I refuse to give up and I'm taking this a day at a time before I end up causing another stroke for getting all worked up once again.

By the time I listed all the chronology on here and with the least bit of info possible, you'd still have 50 pages that contradict. I'm fearing the attorney and court parts - yet I know that is going to be the only recourse, using and racking up debt in the process, all while getting to this point in rebuilding and get slammed against a wall.... It hurts big time ya know!!!

Ughhhh I can't take it anymore....

C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!

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