CCCP

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  1. @CCRP626 We might need top start a different thread discussing 1099C issue - I would love to get input from others, and test the legal boundaries of it.
  2. @CCRP626 According to Multiple Holder - since JDB bought it from a creditor, as a result of this transaction, they are treated the same "as a creditor". And unfortunately Uncle Sam is always contradictory in its requirements: "... Most charged-off debt is sold by original creditors to a debt buyer at a discount. The debt buyer then attempts to collect the debt. Around 2005 or so, there was a change in the IRS instructions that for the first time required debt buyers to issue a 1099c. The Debt Buyers Association was very much opposed to this requirement and filed suit against the IRS (DBA v Snow). The DBA lost that litigation in 2006. Debt Buyers hate the idea of issuing a 1099c. It is not only an administrative expense but a litigation risk and the DB is subject to fairly burdensome IRS compliance audits. The holder of the debt has no vote in the matter. They are required to issue the 1099c. The IRS has established a list of eight different situations under which a 1099c must be issued. Those triggers are: 1. A discharge in bankruptcy under Title 11 of the U.S. Code for business or investment debt 2. A cancellation or extinguishment making the debt unenforceable in a receivership, foreclosure, or similar federal or state court proceeding.3. A cancellation or extinguishment when the statute of limitations for collecting the debt expires, or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Expiration of the statute of limitations is an identifiable event only when a debtor's affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired. 4. A cancellation or extinguishment when the creditor elects foreclosure remedies that by law end or bar the creditor's right to collect the debt. This event applies to a mortgage lender or holder who is barred by local law from pursuing debt collection after a ???????power of sale??????? in the mortgage or deed of trust is exercised. 5. A cancellation or extinguishment due to a probate or similar proceeding. 6. A discharge of indebtedness under an agreement between the creditor and the debtor to cancel the debt at less than full consideration. 7. A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor's defined policy can be in writing or an established business practice of the creditor. A creditor's practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy. 8. The expiration of nonpayment testing period. This event occurs when the creditor has not received a payment on the debt during the testing period. The testing period is a 36-month period ending on December 31 plus any time when the creditor was precluded from collection activity by a stay in bankruptcy or similar bar under state or local law. The creditor can rebut the occurrence of this identifiable event if: 1. The creditor (or a third-party collection agency) has engaged in significant bona fide collection activity during the 12-month period ending on December 31 or 2. Facts and circumstances that exist on January 31 following the end of the 36-month period indicate that the debt was not canceled. ..."
  3. Thanks for looking out, I've researched all of that at the very beginning - so I knew which stipulations to propose and cover under settlement. I've requested right away, and already received, satisfaction letter and settlement agreement (with prejudice). After which, both parties have signed MOTION TO DISMISS (with prejudice) and ORDER OF DISMISSAL WITH PREJUDICE with each party bearing its own costs and attorney fees. Though, to request removal of 1099C is a bit harder nowadays, as it is a Federal requirement for any bank/JDB/etc., but you can get it removed by filling out Form 982 with your taxes: "...The IRS requires banks and other creditors who forgive debts of $600 or more to file the forms. Why? Because the IRS says you have to pay taxes on that so-called income, unless you qualify for an exception... Q: If I got a Form 1099-C, do I have to pay taxes on that amount? Not always. The IRS will also get a copy of the tax form so you'll have to include it on your return, but there are several exclusions and exceptions that can reduce the amount you owe or exempt you from paying taxes on it altogether. Here are the most common ones: You filed for bankruptcy. You had mortgage debt that was forgiven between 2007 and 2014 that was used to buy, build or renovate your primary residence. (The Mortgage Forgiveness Debt Relief Act allows up to $2 million to be excluded from your income.) You had a student loan that was canceled because you agreed to work for a set time period in a certain profession -- including as a doctor or teacher assigned to a low-income area. You were "insolvent" at the time the debt was canceled, which basically means you were broke. This is typically the best option for people dealing with canceled credit card debt. If you do qualify for an exclusion, you need to demonstrate it by filling out Form 982 and including it with your tax returns. Q: I was struggling financially when the debt was forgiven. Does that mean I was insolvent?The IRS requires you to total up the fair market value of everything you owned at the time and compare it to the total amount of money that you owed. (You can use the worksheet on page 8 of IRS Publication 4681, but it may best to work with a tax preparer.) If you owed more money than your assets were worth, then -- congratulations! -- you were insolvent, and you can subtract the amount of insolvency from your taxable income. ..." Read more: http://www.creditcards.com/credit-card-news/1099-c-tax-form-questions-answers-1282.php#ixzz44Vr7P8FW
  4. Spoke to JM on the phone: - they proposed settlement offer of $2000 (before initiating Arb and filing MTC I offered $1500). - I countered with $500 - they called back in 30 min and agreed to settle. WIN IN MY BOOK!!! Thank you everyone for your intellectual support!!! In a few weeks, once paperwork is filed, I will post all my docs for others to use.
  5. What do you think : Should I initiate ARB via AAA or should I wait for JM to reply to MTC?
  6. Filed all docs yesterday. Didn't get to initiate via AAA. Got 2 calls from JM today - not sure what they want, I'm assuming settlement offer. Which raises General question: should I talk to them over the phone or wait for something in writing? Also, what am I suppose to start preparing now? Besides AAA?
  7. Well, if the stress from all this is not gonna give me a heart attack, then I might just go blind from staring at computer screen. Whew, it's 1:30AM and I just finished writing all docs. Everything is on track now. I'm going to try to maybe initiate AAA tomorrow and probably draft a list of violations for future. Happy Easter everyone!!!
  8. I'm a little overwhelmed with the paperwork, but in any case: THANK YOU ALL for continuing support - you are real life SUPERHEROES in my book!!!
  9. @Coffee_before_tea It makes sense. I, personally, find it an overkill, but who am I too say, as I'm not schooled at legal matters.
  10. Gotcha, thank you! I think this post is the best explanation of Affidavit and template, for anyone in the future:
  11. I'm just confused as AFFIDAVIT is for witnesses, thus, how can I be my own witness if I'm basically swearing to myself? And a notary has no knowledge whether any of this is true. And correct me if I'm wrong, the only thing notary does is make sure that the documents are signed in front of her and that documents are original.
  12. @nascar Unfortunately, it looks like you are correct, I should do all or nothing. According to 15 I do not have much: "... Rule 15. Amended and supplemental pleadings. (a) Amendments. A party may amend his pleading once as a matter of course at any time before a responsive pleading is served or, if the pleading is one to which no responsive pleading is permitted and the action has not been placed upon the trial calendar, he may so amend it at any time within 21 days after it is served. ..."
  13. Would you be that specific "...if the MTC is not granted..." or would you use just general "Defendant reserves the right to amend and/or add additional Answers, Defenses and/or Counterclaims at a later date."
  14. So, I'm just confused between AFFIDAVIT and NOTARIZED. For affidavit do I just insert this Generic statement on the separate page at the end of the CREDIT CARD AGREEMENT or any other document that needs to get notarized? VERIFICATION BY AFFIDAVITPersonally appeared before me, the undersigned, who on oath states that the facts set forth in this CREDIT CARD AGREEMENT are true and correct to the best of (his/her) knowledge and belief._______________________________________XXXXXXXXXX, Defendant Pro SeWitness my hand and official seal this the _________ day of __________, _________.(SEAL)____________________________________Notary PublicMy Commission expires:____ / ____ / ________.