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About AndyJackson

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  1. This thread -- SUCCESS - Against Portfolio Recovery Associates! -- describes getting a 1099-C voided by complaining to the state Attorney General. He mentions another thread entitled "Fake Cancelled Debt = Income - IRS 1099-C," but I cannot find it. Apparently that thread had more details. Others chimed in that they used the same method with the same result. Anybody remember the details or know where to find them?
  2. What motivation does a JDB have to issue a 1099-C. They don't loan money so they do not appear to have a legal obligation to file it. Is it bait to get me to call them up? Or is it an accounting trick where they can write off the full amount, even though they paid only a tiny portion for it?
  3. Thank you CreditVortex. I can't find any IRS doc that says it has to be the OC who issues it. I wonder if this part could invalidate the 1099-C: "2. Interest. You are not required to report interest. However, if you choose to report interest as part of the canceled debt in box 2, you must show the interest separately in box 3". The balance definitely includes interest, and they didn't show it in the separate box. Not sure if IRS would care. I do not believe the JDB can prove I owe it, but is the IRS really going to get involved in that?
  4. I'm hoping the experts here could offer some ideas for how to avoid or reduce this 1099-C I just got. It's from a JDB. The discharged debt is around 50K, which is going to cost me around 18K in taxes. It's from a personally guaranteed business loan. I closed the business in 2009 but kept paying on it for about another year. Pretty much just paying interest every month until I finally gave up. I tried working out a plan to pay it off or settle but the bank wouldn't budge. I think my last contact with them was sometime in the fall of 2011. They sold it to a JDB, whom I've never had contact with. They may have sent me some letters and tried to call but I never answered. Luckily they never sued. On the 1099-C they put Sept '14 as the date of discharge ("identifiable event"). Not sure where they came up with that, but it may be around when SOL expired. The identifiable event code is "I -- Other actual discharge before identifiable event." I'm not insolvent now, and don't think I could prove insolvency even three years back when the OC sold it. The only thing I can think of that might help is to dispute the amount. There's a separate box on the 1099 for interest and they left it $0, but a big chunk of the balance definitely includes interest and fees. From what I've read, a JDB won't have details on how much is principle and how much is interest and fees. Since it was business debt I'm wondering if I could deduct the interest portion. But the business has been closed for years, so not sure if that's even an option. Is there any argument I could make to the IRS to dispute it?
  5. Apologies if this has been answered before, but I've searched and cannot find the answer. I received a dunning letter from a collection agency, who is acting on behalf of a junk debt buyer (CACH). Should I send a debt validation letter to just the CA? Or should it be sent to both the CA and the JDB?
  6. Thanks for all the great info in this thread. One thing I still dont understand us why a JDB wouldn't be able to produce evidence of my specific account being one of the thousands of accounts they bought from the OC. Obviously they got my information somehow because the account number, amount, and my name and address are on the dunning letter. Why wouldn't they just print out the spreadsheet or whatever source of my info was attached to the bill of sale?
  7. To offer another viewpoint, I would not consider BK unless it's an absolute last resort. Instead consider something along these lines ... You say you have paid off cars you're using for transportation to work, but you're also paying a $600/month car payment? Sell that car. Get rid of the payment and put the money you get for it towards credit card settlement. I have no idea how much the 600/month car is worth, but let's say it's 9,000. Good start. Now put the 600/month you were paying into savings for 6 months. That's another 3600. So after 6 months you'll have 12,600 from just this one step. Add your 5,000 from cashing in retirement, and you're up to 17,600. Work harder on the overtime and photography business to get them each to 150/month. Save that for 6 months, add to the pot. That's another 1800, for a total of 19,400. Now to convince creditors to settle you'll have to stop paying them first. So take the 1,300/month you've been paying and save that every month for 6 months. Now you're up to $26,600 after 6 months, which is 51% of what you owe. I'm 100% confident you can settle $52K for 51%, and probably do way better than that. 35% to 40% is common.