I got a offer

[HHM]

Payment plans out the window, why do you say that?

To be more accurate, long term payment plans are out the window, you "might" get a few months. Keep in mind, the leverage you have with settling with them is that cash NOW is more valuable to them than Cash over time.

[lovemybugs10]

Ah, yes. That makes sense.

Discover offered us payments until it was paid in full- but to settle we are paying 670 for 6 months.

[catleg]

The debt had already been sold to a JDB, therefore the negotiation of no 1099 would be in order.

You are correct that the 1099 is not negotiable with the OC, but that was not the case here.

It's not a question for negotiation. JDB's have a safe harbor exemption from the IRS regs requiring 1099 issuance, since they generally have no way to determine what was the original balance owed by the consumer. So I don't think any debt purchaser is going to 1099 you. Naturally, I could be wrong.

[lovemybugs10]

I have the 3 that don't sale off. Discover, boa and Citi. I am preparing for those 1099's though!

[keepmine]

It's not a question for negotiation. JDB's have a safe harbor exemption from the IRS regs requiring 1099 issuance, since they generally have no way to determine what was the original balance owed by the consumer. So I don't think any debt purchaser is going to 1099 you. Naturally, I could be wrong.

In 07 an industry trade group sued the Tresury Dept. over this issue and lost. They {3rd party collectors} are required to issue 1099C's.
The lawsuit is DBA vs Snow. A google search will find a few pdf links to the decision.

[josephga]

Iv decided not to take any settlement offers. I only see 3 options bk 7 or send me a 1099 for the full amount and i take the money put aside for bk and pay the tax or option 3 do nothing and wait for the statue of limitations to run out in 4 years

[frogger]

In 07 an industry trade group sued the Tresury Dept. over this issue and lost. They {3rd party collectors} are required to issue 1099C's.
The lawsuit is DBA vs Snow. A google search will find a few pdf links to the decision.

Good link! 1099's are NOT

[daytona]

Technically you might be able to avoid paying any taxes on forgiven debt...to the extent you are "insolvent" you will not have to pay taxes on 1099.... check out the publication here http://apps.irs.gov/pub/irs-pdf/p4681.pdf

[josephga]

The lawyer I talked with today charges 1800.00 that's for every thing

[catleg]

In 07 an industry trade group sued the Tresury Dept. over this issue and lost. They {3rd party collectors} are required to issue 1099C's.
The lawsuit is DBA vs Snow. A google search will find a few pdf links to the decision.

There is a newer case than that but I've lost the link.

[tacomeat]

I came across this the other day (scroll down and look on the right side for the Free Report about Debt Settlement). http://www.**********.com/ It popped when I was doing research.

out of all the sites to come across, its amazing how that was one of them! lol
and the research - it must have been a complete bust due to all the redundancies... lol

thats some funny stuff right there.

[HHM]

out of all the sites to come across, its amazing how that was one of them! lol
and the research - it must have been a complete bust due to all the redundancies... lol

thats some funny stuff right there.

Not sure what you mean.

[catleg]

This is what I was referring to, slightly off target but still relevant.

Inside ARM

www.acainternational.org) stressed in its comments to the IRS that because debt purchasers may not receive a breakdown of amounts owed by a consumer, such as principal, interest and fees, this segment of the industry would face difficulty determining how much must be properly reported to the IRS.