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@jmbfl wrote:
It is seven and a half years from DOFD,
SOL runs from DOLA and varies from state to state.
These folks are real bad actors. They are a collection agency that works in conjunction with an issuer of sub-prime credit cards. That issuer has been canceling card programs and closing accounts left and right. They both are subjects of FTC and AG investigations and penalties. I would find out what the SOL is for this debt in your state. If you are clear of it leave this matter alone. If you move up the DOLA you will reset the SOL.
If you are not 100% clear that you can pay this entire debt leave it alone. It does sound like the SOL has run and there is nothing they can legally do to compel you to pay it. You will always owe it but it will be an uncollectable, time barred debt. If you pay a dime on the debt you will reset the DOLA and once again able to be subjected to legal action. Paying on this account does not reset the DOFD. The DOFD will remain the same until the account becomes current. (Unless the account is illegally reaged, something to be ever vigilant of.) Therefore, it should be off you CBR's by 7.5 years (and it is 7.5 years) after the DOFD. If the CR you are looking at has a scheduled date that is when it should fall off.
BTW: If you are forgiven a debt, the amount of the forgiveness is income. You may receive a 1099 form for it and have to report it on your income tax return! If you still owe it it is not forgiven and it is not income.
@jmbfl wrote:
BTW: If you are forgiven a debt, the amount of the forgiveness is income. You may receive a 1099 form for it and have to report it on your income tax return! If you still owe it it is not forgiven and it is not income.
You may receive a 1099 if more than $600 is forgiven, but you should not receive anything if less...
@nmorton79 wrote:
@jmbfl wrote:
BTW: If you are forgiven a debt, the amount of the forgiveness is income. You may receive a 1099 form for it and have to report it on your income tax return! If you still owe it it is not forgiven and it is not income.
You may receive a 1099 if more than $600 is forgiven, but you should not receive anything if less...
Well since we are going to be technical about the matter:
A 1099-C, Cancellation of Debt, is required to be filed for cancellation of a debt owed to a financial institution, ... or any organization having a significant trade or business of lending money if the amount forgiven is $600 or more.
It is income to you and reportable by you on your income tax return regardless of the amount.
If you actually have a cancelled debt I suggest you refer to IRS Publication 525 obtainable here:
http://www.irs.gov/pub/irs-pdf/p525.pdf
as there are certain exceptions if the debt cancelled as a gift or bequest to you, in bankruptcy proceeding, a mortgage debt, or a business debt.
@jmbfl wrote:
@nmorton79 wrote:
@jmbfl wrote:
BTW: If you are forgiven a debt, the amount of the forgiveness is income. You may receive a 1099 form for it and have to report it on your income tax return! If you still owe it it is not forgiven and it is not income.
You may receive a 1099 if more than $600 is forgiven, but you should not receive anything if less...
Well since we are going to be technical about the matter:
A 1099-C, Cancellation of Debt, is required to be filed for cancellation of a debt owed to a financial institution, ... or any organization having a significant trade or business of lending money if the amount forgiven is $600 or more.
It is income to you and reportable by you on your income tax return regardless of the amount.
If you actually have a cancelled debt I suggest you refer to IRS Publication 525 obtainable here:
http://www.irs.gov/pub/irs-pdf/p525.pdf
as there are certain exceptions if the debt cancelled as a gift or bequest to you, in bankruptcy proceeding, a mortgage debt, or a business debt.
Message Edited by jmbfl on 11-15-2008 01:35 PM
Thanks for the education...everyday I get a new wrinkle in my brain....anyhow, I was in no way trying to be technical as obviously there was more that I didn't know about and I am learning everyday just like everyone else on this forum...I got my info from Suze Orman(her show) and I don't recall her going into detail about cancelled debt.
I found your response to be a little sarcastic. Please accept my most sincere apologies if that was not the case, but thats how it came across, so thats how I took it.
So it sounds like I should do the following:
Is that about right? Also are there any examples of DV, PFD, GW, etc. type letters anywhere?