Reply
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

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

When you get a 1099-C that means the debt is cancelled and you have to claim it as income and pay taxes on it.  However, the IRS will let you claim insolvency.  Being you only receive SSI.

 

They cannot send you a 1099-C cancelling the debt then try to make you pay it.  Big no no.  There is no debt if it has been cancelled.  I don't care what the OC wants, it is not up to them.

 

You need to contact the IRS ASAP and claim insolvency based on no income other than SSDI.

 

 

Regular Contributor
Posts: 152
Registered: ‎04-23-2013
0

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

Guiness it isn't the 1099-C $$$ that they're after - it is the balance of this unsecured SL - as they claim, due to the law changes (last post and a few others hit on the specifics), they're saying this loan is NOT PAID via P&TD and they're wanting that $$ - it's not the IRS or anyone over a tax matter.

Does this clarify or am I just making this more difficult to explain/understand? Believe me you should be thinking "what the heck this guy isn't making sense" as I'm not. However, this is literally EVERY excuse I've been fed since I rocked the boat and challenged Sallie Mae I've this loan allegedly being "non-dischargeable" under P&TD 4 years later.

Let me know if you need me to clarify anything else hun. I'm sorry again for the poor explanations.
BCE: $11K; BC-REW: $10,300; BC-RING: $10K; C1 QS-REW: $5,500; C1 V-SIG: $6K; FREEDOM: $8,500; DISCOVER-IT: $3,800; AZ REW: $3K; KAY: $7,400. SCORES: EX: 801; TU: 814, EQ: 803- 12 JAN 15. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 CLUB ACROSS ACHIEVED 07 DEC 2014!
Senior Contributor
Posts: 3,930
Registered: ‎10-26-2012
0

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


nma851 wrote:
Guiness it isn't the 1099-C $$$ that they're after - it is the balance of this unsecured SL - as they claim, due to the law changes (last post and a few others hit on the specifics), they're saying this loan is NOT PAID via P&TD and they're wanting that $$ - it's not the IRS or anyone over a tax matter.

Does this clarify or am I just making this more difficult to explain/understand? Believe me you should be thinking "what the heck this guy isn't making sense" as I'm not. However, this is literally EVERY excuse I've been fed since I rocked the boat and challenged Sallie Mae I've this loan allegedly being "non-dischargeable" under P&TD 4 years later.

Let me know if you need me to clarify anything else hun. I'm sorry again for the poor explanations.

HI nma851, they can try has hard as they want to get there money. That face that your on SSDI now they can't touch that. I'm really sorry for what happen to you but all means, if the OC knows this and I'm sure the IRS will know soon they can not touch your SS. The law even states this. Ask any consumer attorney. We are here to help, please PM me or anyone else if you want to talk in PM. Guiness, myself or shogun...... I'm sure they don't mind me speaking on their behalf. God bless and keep myself and everyone informed!!!!!

 

 

DaBears

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

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

[ Edited ]

nma851 wrote:
Guiness it isn't the 1099-C $$$ that they're after - it is the balance of this unsecured SL - as they claim, due to the law changes (last post and a few others hit on the specifics), they're saying this loan is NOT PAID via P&TD and they're wanting that $$ - it's not the IRS or anyone over a tax matter.

Does this clarify or am I just making this more difficult to explain/understand? Believe me you should be thinking "what the heck this guy isn't making sense" as I'm not. However, this is literally EVERY excuse I've been fed since I rocked the boat and challenged Sallie Mae I've this loan allegedly being "non-dischargeable" under P&TD 4 years later.

Let me know if you need me to clarify anything else hun. I'm sorry again for the poor explanations.

Ohhhhh!  Got it.  Any type of debt IS dischargable, including SLs.  If you don't have the means to pay it, and it would hurt you, it can be discharged.  Since your PT&D was filed 4 years ago, they have to go by those laws.  They can't keep changing to fit their needs. 

 

Read this article I found. You will find it very interesting http://www.disabled-world.com/disability/finance/student-loan-claims.php

 

 

Regular Contributor
Posts: 152
Registered: ‎04-23-2013
0

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

You know what I'm going to do for all of you?

I'm going to make a VERY simple chronology with dates and what occurred so you all can "follow this money" and attempt to try and follow this P&TD discharge or in the case of just the unsecured SL, not discharge.

I have totally obliterated this thread to the point everyone is hunting around for certain bits and pieces which I can tell is becoming quite cumbersome for even me to keep track of.

Will this make it easier? Sample:

17 Jul 2009: Filed for P&TD for all SL's (total 14, all are stafford sub'd/unsub'd w/guarantee through Feds except ONE which is unsecured, all serviced by Sallie Mae)

22 Jul 2009: recd notice of deferment on all loans pending P&TD application decision.

01 Aug 2009: reviewed all medical docs, sent request for independent exams, went on scheduled exams through sallie's dr's

19 aug 2009: received notice of "Conditional Discharge of Student Loan Debt due to Permanent and Total Disability" - start of 3 year waiting period clock, mandatory, and in 3 years final discharge will be entered. Also received notice loans will remain in deferment until I either magically become se-crippled or 3 years of permanent disability, just to make sure I stay that way, and then we will wipe out all $71K.

01 Jan 2010: Rec'd yearly letter indicating I have 2 years left to fulfill. Checked all CRA's and obtained CR's and scores from all 3, all SL's reporting deferred, never late, some say "conditional Discharge - medical" others just say "deferred payment date unknown.

Will something like this help particularly once we get to why only $57K was paid instead of $71K, thus leading to the matters at hand (P&TD magically doesn't apply to the unsecured)? I'll make it short and sweet and to the point. I've already made you and now others take ALOT of their time....

Still, I can't say anything but a huge thank you for all of this :smileyhappy::smileyhappy::smileyhappy:. I feel like there is hope and the SSDI (not SSI) nazis are after me!!!
BCE: $11K; BC-REW: $10,300; BC-RING: $10K; C1 QS-REW: $5,500; C1 V-SIG: $6K; FREEDOM: $8,500; DISCOVER-IT: $3,800; AZ REW: $3K; KAY: $7,400. SCORES: EX: 801; TU: 814, EQ: 803- 12 JAN 15. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 CLUB ACROSS ACHIEVED 07 DEC 2014!
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

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

[ Edited ]

Believe it or not I understood your posts.  I was just confused on the 1099-C.

 

Did you read that article?  It is stating that SM is forgiving private, unsecured SLs due to PT&D.  No, they do not have to because they are not federal but that article, written 3 years ago, says they are.

 

 

Regular Contributor
Posts: 152
Registered: ‎04-23-2013
0

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

Guinness thanks for your link - I'm getting so frazzled I think it's time for me to walk away for a while as I can't read anymore it seems and my brain is just fried...

Still haven't slept.... Yep - this has gotten me THAT upset and at wits ends I can't sleep! Heck after 7+ years of picky everything in order to live on cash fixed income only, and after getting over a GOOD year almost 2 of rebuilding, that 100 -150 point+ on scores jumping and then seeing the major drop when THIS nonsense hit - it has all just taken it's toll this last week...

I'm sorry again - I really am appreciative but I have to put it down for the rest of today before I lose the last half of my brain cell and/or make you all so mad at me I'm banned!!!
BCE: $11K; BC-REW: $10,300; BC-RING: $10K; C1 QS-REW: $5,500; C1 V-SIG: $6K; FREEDOM: $8,500; DISCOVER-IT: $3,800; AZ REW: $3K; KAY: $7,400. SCORES: EX: 801; TU: 814, EQ: 803- 12 JAN 15. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 CLUB ACROSS ACHIEVED 07 DEC 2014!
Moderator
Posts: 13,587
Registered: ‎04-15-2011
0

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

Just a FYI,,,,   not even on the Ban meter's radar.  :smileywink:.     And yes, occassionally I have to walk away too and get things in perspective.  Best of luck to 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!
Regular Contributor
Posts: 152
Registered: ‎04-23-2013
0

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

Well Guiness and Shogun - got some PRETTY GOOD NEWS for y'all. Hope you both are having a good week as well first and foremost :smileyhappy:

Out of nowhere, got an alert, checked just EXP, and the thorn in my side TL is completely GONE!! I honestly have no idea how or why - and I called the OC to find out what is going on given I received no written correspondence, and after being bounced around their phone system for an hour or seven, got to some "disability verification" person.

After going through the motions, she advised that they have the DD and since they cannot either confirm nor deny anything "right now", they're simply deleting the TL "in good faith" until they are able to find hard copies of everything from years ago. Furthermore, apparently the emails that I had sent back in the day, along with the faxes for all the P&TD info, have a special "barcode". While this barcode does not send them to anything, the fact I have just ONE P&TD document was enough for her to "in good faith" delete this since I did do my part "back in the day" and can see all other TL's were cancelled the same way (all the government-backed ones).

So - at least for now, and given she used this "in good faith effort" line at least 100 times, I believe we are certainly to the point of ALMOST permanent resolution!!!

I also asked about why the FED ones show this "paid through government insurance claim" to which she stated "That is accurate but is not negative reporting". Told her thats not true as they've all been moved, on the CR's that is, into the "potentially negative" side and she stated that it is now a CRA matter as they are not reporting derog nor have they in years since the conditional P&TD and final P&TD. Still argued a bit on this - and all she basically said was if the CRA's think this is negative, it *may be true* since I didn't pay them - they were cancelled/discharged - but she will further look into this.

Good news yes?? I'd like to think so but not until I see the remaining 13 out of this negative category. I guess I see her point too as once cancelled, thats basically the equivalent of a BK discharge (and I know one of ya will correct me if I am wrong LOLOL), which means irrespective of that cancellation, DOFD would still apply which would be June 2009. Quick refresh: June 2009 is when the conditional period began and when the P&TD was approved. So, that all being said, I'm venturing to say that I just may be stuck with those "marks" on the CR's.

Nevertheless, the MAIN issue is over - for now - through all YOUR diligent help and overall caring for me, a crippled man you've not ever met in your life. My appreciation for you standing by my side through all this is endless. I could NOT have done any of this without you!!!!

Lets hope and pray they leave this in the grave once and for all, since I haven't received my monthly "pay up" letter this month tells me something has occurred, and as for the other TL's from sallie about the "cancelled" comments, if that really is the way it will report, even though there was not nor currently showing a late pay even once, I'll live with it for now I suppose. Remember I went straight from paying to deferment to cancellation - and they've reported all of those correctly (no lates at all just that comment), but I just cannot fully understand how this is considered derogatory by the CRA's.

Guess it's a topic for another day and another adventure. In the meantime, decided (just for the hell of it really to see if i could get approved for anything) to apply for a cap one card, unsecured, and guess what: $1,700 card w/0% for a year, 12.99% after that is now heading my way!!! All that good existing history dating back to 1995 did some good since there isn't any "bad" left - just a stagnant report for lack of better words.

I think it is safe to say that this alone tells me my scores are at least in the mid-upper 700's, across the board, or none of this would have happened.... If I'm wrong I know I'll be corrected :smileyhappy: :smileyhappy: :smileyhappy:.

Now the real test will be if I can get the car. I could get that at a high interest rate and now I'm wondering if I can get GM financial to re-run me, now that BAD sallie is gone (especially if she comes back!!), and shooting for the 0% or at maximum 5%! No more than $375/m and certainly NOTHING more than a new vehicle that gets me from point A to B - nothing fancy at all and by far nothing luxurious. If I can get a "base model" to knock it down further that is the plan as well as NOT using the cap one card that is en route.

Talk about a GREAT FEELING??? Now I feel like I did 10 years ago where I could walk in anyplace and get what I wanted without worrying. Disability may be my life but my life does not have to be dictated by disability!!!

Thank you SO VERY MUCH ONCE AGAIN. You've got another success story to add to your shelf darlin :smileyhappy: :smileyhappy: :smileyhappy: :smileyhappy:. All that matters now is ensuring nothing but GOOD keeps being reported - and since I have no use for the actual credit card that is en route, all that will do is serve as a positive TL :smileyhappy:. Guess home-ownership is VERY much in my near future!!!

Oh what the heck I'll grab you two a GREAT meal courtesy of cap one for all you've done!!! And yes, it will be PIF'd once the statement arrives as NO derog's are allowed on my CR's!!!!

Hugs and handshakes and MAJOR thanks again you two - especially Guiness for all YOUR one on one efforts :smileyhappy::smileyhappy:
NMA - HAPPY NMA THAT IS!!!
BCE: $11K; BC-REW: $10,300; BC-RING: $10K; C1 QS-REW: $5,500; C1 V-SIG: $6K; FREEDOM: $8,500; DISCOVER-IT: $3,800; AZ REW: $3K; KAY: $7,400. SCORES: EX: 801; TU: 814, EQ: 803- 12 JAN 15. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 CLUB ACROSS ACHIEVED 07 DEC 2014!
Moderator
Posts: 13,587
Registered: ‎04-15-2011
0

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

What an inspiring read.  I'm so happy for you and hope that you experience further positive and successful endeavors.  Yes, it does make us feel quite good to hear stories such as yours.  Continue to be a part of our community and if possible help others and pay it forward.

 

Shogun, a Happy Shogun.  :smileyhappy:



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!
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. 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.