My debt was sold to a collection agency. Now the original lender contacted me again

[rae]

Thanks Epiphany! Yes, I meant charged off. The creditor is nearing their SOL in this state, so I wondered if I was going to get a 1099 from them. I hope to have a job in the next few months, but if I don't, then the SOL will run out in a few months.

[catleg]

A sale of the debt doesn't trigger a 1099.

In fact if you receive a 1099 you can consider the debt "forgiven" and I think you would have a defense against a lawsuit at that point.

re: calls, my experience was very good with Capital One also, they put me into BK status very easily and stopped calling. Not so much with the others, but I wasn't big into talking with anyone at that point. It would have been a full time job, and I already had one of those I was trying to keep.

[rae]

thanks Cat. Well, one creditor tried to sue me, but I have nothing so they have never been able to collect on their judgment. When I get a job, I'll contact them. Until then, they are out of luck. My lawyer told me to wait it out and not respond. He said if I get a job, I can settle or declare chapter 13. Otherwise, the SOL will run out soon. The other creditors have basically stopped calling. One of my creditors told me a couple of years ago that they were going to send me a 1099 but they never did. I don't know if they changed their mind or what.

[treehugger1]

Epiphany, I am pretty sure I did not offend you, but if I did, then please accept my apologies.

I'll add a bit more of my personal experience with CA's and JDB's.

My many capital1 cards went to 3-5 (that's right, 5!) different collection agencies. Every time I requested DV, C1 seemed to have the debt back. I don't think cap1 is quick to sell debt. After a couple of years, one of my accounts was sent by Cap1 to an attorney in state, and they sued. I let them get a default judgment. No big deal. It is a mystery to me why out of 4 cap1 credit cards, it was only the smallest balance card that cap1 hired the attorney to sue over. C1 has never sold any of the debt.

I have been sued for two citi-backed credit cards. The first default judgment is on a $10K credit card. No move by attorney to attempt to collect on judgment. I was just served this morning on the second card (under $2K.) So, in my case, citi authorized suit after sending the debt through several CA's. Citi has never sold the debt.

I had a few BankofAmerica/MBNA credit cards. These psssed through 2-3 CA's who could not collect. BoA eventually sold these accounts to JDB's. BoA now reports a $0 balance/paid on my credit reports. Both JDB's report to my credit reports related to collections. I requested DV for both accounts, but never received any information. My credit report reports that these "JDB" accounts are disputed by consumer.

In my opinion, sales of defaulted CC debt by original creditors is not something they wish to engage in unless they determine the debtor has no intention or no ability to pay off the debt in a timely manner. An original creditor will most likely send your account to several CA's. While the CA accounts seem to occur "one-at-a-time" I can how see one could have a couple different CA's attempting to collect on the same debt at the same time. Technology can really screw things up, LOL.

[epiphany]

Thanks for all the info Tree. I just received my first credit report post discharge (of which I have some questions but am going to have to start a new thread when I have some time), and noticed that I do not have one single CA on there. So I am assuming, that those debts were never sold, though some are reporting as such. But again, that's for another thread.

As far as offending me, I had to go back and read again what you wrote to make sure I didn't miss some evil insult...couldn't find one... I don't consider disagreeing with someone, which is what you did at the time, an insult. (but now I know you were secretly cursing me. ) I do appreciate you taking the time to explain.

Sorry you are still doing the hokey pokey with the creditors..you were doing that when I was discharged and that was almost a year and a half ago!!

ep

[catleg]

I have never had a CA or JDB record a tradeline, but they have dinged my credit report plenty of times with Hard inquiries, guess it's just another tactic in their book.

[epiphany]

I have never had a CA or JDB record a tradeline, but they have dinged my credit report plenty of times with Hard inquiries, guess it's just another tactic in their book.

Yeah I noticed that too. I don't have any now but before I filed, there were plenty of hard inquiries from CAs. I wonder why they do that. Is it easier for them to do a hard pull rather than a soft one? Do they think you'll contact them if they do that? Do they not know any better? Tree?

ep