05-05-2013 11:30 AM - edited 05-05-2013 11:31 AM
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.
05-05-2013 11:44 AM
05-05-2013 11:52 AM
05-05-2013 12:37 PM
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.
05-05-2013 01:19 PM
05-05-2013 01:39 PM
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.
05-05-2013 01:44 PM
05-05-2013 01:47 PM
At your service...
Your situation has caught my attention and I will be following it's progress so please keep us informed. Thank you.
05-05-2013 02:03 PM
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.
05-05-2013 04:35 PM