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Norman, is it the 1099-C that makes the situation different than a charge off that never got to the point of a 1099-C?
@Anonymous wrote:Norman, is it the 1099-C that makes the situation different than a charge off that never got to the point of a 1099-C?
Yes, "but" - it depends on the lender and how they view the situation. Some lenders argues that the 1099C is just an IRS formality, and they may continue to report each month and not zero out the balance - BofA is notorious for this. They have even gone so far as to later sue debtors to collect on balances they have 1099'd. Other lenders OTOH, will go ahead and discharge the debt with the 1099C, zero the balance and close the books on it.
The whole 1099C situation is a bit muddy.
And that is exactly what is happening with my Capital One account that was charged off and then 1099-C sent. They are no longer pursuing the debt but each month my report shows as "failure to pay" the $1000 balance owed. I did send a dispute thru Experian 2 days ago trying to verify accuracy of balance and I mentioned the 1099-C.. I've paid taxes on the 1099-C amount. Will see what happens.
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I'm in the same boat. On Mon I called about an old Cap 1 charge off to find out what I could do to clear this up. I spoke to very nice lady at Cap 1 who advised me that I should have received a 1099-C in Mar 2015 regarding this account. I checked my 2014 taxes and in fact I did report the amount she said the 1099-C had listed. She advised me that Cap 1 was no longer pursuing payment on this account because a 1099 had been issued. She also said there could be no settlement offered. She did say if I was to pay on the account I would have to pay the full balance of about 1K either in lump sum or in payments. She said since there is no payment due or a due date I was to pay whenever I wanted. She never asked for payment, only gave me options. She also mentioned that if the balance is ever paid in full that I could call back 22 days after last payment posted and request a letter stating paid in full. Maybe it's the 1099-C that throws a wrench into the whole situation. I'm still undecided on how to move forward with this as well. That is my 2 cents. Good luck.It really depends on your short and long term goals as to whether you should pay or not. I can wait another year and 3 months and my CO will fall off however I do not wnat to wait a year and since its a debt that I owe, I will do teh right thing and pay it off. Not only will this reflect positively on mt CR, the creditors i am currently with will see me as being more credit worthy in the longterm.
I was also advised by DFAS that I wasnt required to pay, and after I paid the account it did not become current. Its still dated Aug 2010 but showing a lesser balance. DFAS has reported this CO on my CR since Aug 2010 every single month.
Thats what I meant by "monthly updating". The OP would not be seeing monthly updates since the OC has given up pursuit of the debt via the 1099C. I'm not saying he should NOT make good on the debt - just that he would probably be better off saving up and doing a lump sum settlement/PIF, rather than monthly payments.
I agree with you, as long as goodwill is made toward the payment of the debt.
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I'm in the same boat. On Mon I called about an old Cap 1 charge off to find out what I could do to clear this up. I spoke to very nice lady at Cap 1 who advised me that I should have received a 1099-C in Mar 2015 regarding this account. I checked my 2014 taxes and in fact I did report the amount she said the 1099-C had listed. She advised me that Cap 1 was no longer pursuing payment on this account because a 1099 had been issued. She also said there could be no settlement offered. She did say if I was to pay on the account I would have to pay the full balance of about 1K either in lump sum or in payments. She said since there is no payment due or a due date I was to pay whenever I wanted. She never asked for payment, only gave me options. She also mentioned that if the balance is ever paid in full that I could call back 22 days after last payment posted and request a letter stating paid in full. Maybe it's the 1099-C that throws a wrench into the whole situation. I'm still undecided on how to move forward with this as well. That is my 2 cents. Good luck.It really depends on your short and long term goals as to whether you should pay or not. I can wait another year and 3 months and my CO will fall off however I do not wnat to wait a year and since its a debt that I owe, I will do teh right thing and pay it off. Not only will this reflect positively on mt CR, the creditors i am currently with will see me as being more credit worthy in the longterm.
I was also advised by DFAS that I wasnt required to pay, and after I paid the account it did not become current. Its still dated Aug 2010 but showing a lesser balance. DFAS has reported this CO on my CR since Aug 2010 every single month.
Thats what I meant by "monthly updating". The OP would not be seeing monthly updates since the OC has given up pursuit of the debt via the 1099C. I'm not saying he should NOT make good on the debt - just that he would probably be better off saving up and doing a lump sum settlement/PIF, rather than monthly payments.
I agree with you, as long as goodwill is made toward the payment of the debt.
Another reason to not do a monthly repayment plan is that if you should happen to have financial difficulty and stop paying, in most states this is considered a new default for which you can be sued - the often mentioned "reset of SOL". It does not effect reporting, but it does effect the period during which you can be sued for the debt.