Chapter 13 Discharged ... But It's Still Not Over ...

[EndInSight]

Munch...munch, aaah popcorn for breakfast! as I sit on the edge of my couch munching away, thinking to self, this is super news and I am SO happy for you

[chpxiii]

Thanks for the update! I've got my legs crossed, I'm a programmer so I need my fingers. :-P

Good luck!

[kcsmom76]

Praying you get awesome news today!!!

[coma]

**on the edge of my seat, munching on b-day cake, not popcorn **

[JollyGG]

I don't know that I would consider an offer that barely covers your lawyers fee's any more seriously than the $500 offer.
After all covering the lawyers fees is the bare minimum that the judge would order were this to go to court.
I agree with everyone who has said that we don't need numbers. We just want to hear that you got a settlement you are satisfied with.

[Boscoe]

Your husband is absolutely right. Your offer or nothing. Your way or the highway (to the courthouse). If you are comfortable with the settlement offer, then ALL of that cash needs to go to you and your family. The CU can deal with the attorney's fees and court costs.

Obviously, your attorney will make sure everything is signed and in proper order,and that it includes ALL of their fees.

Good luck and keep us posted. Of course, a very small part of me would like to see how Judge Judy reacts if you DON'T settle!!

[lrprn]

Ah, the latest update of the illegal repossession by the evil credit union serial.....thanks for the update, FH! Hope you will follow hubby's lead and hold out for you deserve. We're all rooting for you!

[EndInSight]

**on the edge of my seat, munching on b-day cake, not popcorn **

HAPPY BIRTHDAY!!!

[tish]

Hi, I am new to forum and just found this thread. I hope you win your case. It would be nice if the judge ordered the cu to print a full page apolagy to your family for the heartache and pain caused to you over their callus treatment of your family. Good luck you have someone else on your side. P.S.
Any money received from a lawsuit that is not for injury or illness
is taxable,and the expenses for recovery of taxable income is deductable.Please consult your tax preparer for futher info.

[coma]

HAPPY BIRTHDAY!!!

Thanks

[FeelingHopeless]

Any money received from a lawsuit that is not for injury or illness is taxable,and the expenses for recovery of taxable income is deductable. Please consult your tax preparer for futher info.

Thanks so much for the info! I heard from a close friend here at work that whatever we got as a settlement or judgement would be taxable ... didn't know about the recovery deduction. We usually do our own taxes using TaxCut or TaxAct or whatever happens to be on sale ... but I think this year we'll have to use my Mom's accountant ... just to be on the safe side.

I think there might be a settlement agreement in the works ... waiting on a call from our attorney to go sign paperwork sometime this week to make it official. As soon as my name is on the dotted line, I'll tell you guys all ...

Thanks for hanging in there with us ... it's been a bumpy ride ... but it looks like we're going to have a happy ending.

[FeelingHopeless]

Oh, and I almost forgot ... Happy Birthday, Coma!!!

[coma]

Oh, and I almost forgot ... Happy Birthday, Coma!!!

Thanks...

Keep us posted!

[Keebler]

Source:
Publication 17 Your Federal Income Tax For Individuals
Part Two: Income
Chapter 12 Other Income

Court awards and damages.

To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Include the following as ordinary income.

1. Interest on any award.
2. Compensation for lost wages or lost profits in most cases.
3. Punitive damages, in most cases. It does not matter if they relate to a physical injury or physical sickness.
4. Amounts received in settlement of pension rights (if you did not contribute to the plan).
5. Damages for:
a. Patent or copyright infringement,
b. Breach of contract, or
c. Interference with business operations.
6. Back pay and damages for emotional distress received to satisfy a claim under Title VII of the Civil Rights Act of 1964.
7. Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income.

Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments).

Opinion:
It seems to me that a settlement is taxable if the thing it replaces would have been taxable. So, a settlement that pays to replace something you lost wouldn't be taxable. A settlement that gives you something you didn't already have is taxable. I can't decide which applies in this case...

[FeelingHopeless]

Opinion:
It seems to me that a settlement is taxable if the thing it replaces would have been taxable. So, a settlement that pays to replace something you lost wouldn't be taxable. A settlement that gives you something you didn't already have is taxable. I can't decide which applies in this case ...

Well ... I don't know ...

Let's say the settlement replaces the amount of trade-in I would've had ... had they not repo'ed the van. That wouldn't be taxable. But if the settlement is more than that amount?

I don't know ... taxes give me the willies ... better safe the sorry, I supose. I better talk with a tax professional. So, does the court send the IRS a 1099 form or something? It doesn't matter ... after all this drama, the last thing I'd want to do is be audited! haha