equislee Posted February 4, 2003 Report Share Posted February 4, 2003 I was so excited about settling another account that I decided to go ahead and call a law firm that I had recieved a letter from regarding my providian account. The law firm said they had received my letter about my husbands unemployment,had forwarded the letter to Providian and that providian now wanted a breakdown of my assets and expenses. I have never had a credit card company ask me for that.What do you think is up with this? Link to comment Share on other sites More sharing options...
bw4444 Posted February 4, 2003 Report Share Posted February 4, 2003 Do not do this!!! Send them nothing!!!! You will be giving them all the information they need to determine whether to sue you. They want to find out if there are any assets they can go after. This is real sleazy and underhanded. Make them an offer, but don't disclose your finances and assets to them. Don't even tell them what banks you use, etc. If they accept your settlement offer, pay by cashiers check, not your own personal check. They don't need to know what bank you use or your account number. Link to comment Share on other sites More sharing options...
equislee Posted February 5, 2003 Author Report Share Posted February 5, 2003 I figured that was what they were looking at, I was thinking about telling what my income and expenses were so they could see for them selves what a tight situation I was in but I think your right I think I will just follow up with a letter restating my financial situation and offer.Thanks. Link to comment Share on other sites More sharing options...
Helper1 Posted February 6, 2003 Report Share Posted February 6, 2003 Please what ever you do, read up on what a settlement is. Some of the companies you settle with will sell the left over balance of that credit card to another company and you will have to pay it again. Also look up the tax law i am almost postive that you have to claim the other half of what you pay as income on your taxes. But what ever you do never give you networth information to a company that wants to settle call your credit card company and ask them for help they can at times refer you to a company that can help and not rip you off. Link to comment Share on other sites More sharing options...
LadynRed Posted February 6, 2003 Report Share Posted February 6, 2003 A bit of clarification here. You ONLY have to pay taxes on a settled debt under 2 conditions: 1 - they MUST send you a 1099-C, 'cancellation of debt income', this you file with your taxes; 2 - IF the amount 'forgiven' in the settlement is $600 or more, it is the ONLY time you would even GET a 1099-C. You'd have to file that with your taxes for the year it was issued. Depending on your tax bracket, the tax on the forgiven amount would be far less than you'd pay a CA.There's also the possibility that even if you get a 1099-C, if you can show insolvency at the time you file your taxes, you may not have to pay anything on a 1099-C anyway.Not all businesses can issue 1099-C's, I don't think CA's can, so you'd have to ASK for a 1099-C from the OC in order to totally cancel the debt. That, and only that, will prevent them from selling the remaining balance to another CA.**** update - I found out that only Financial Institutions, Credit Unions or Fed Gov't Agencies can issue 1099-C's. So, CA's DEFINITELY cannot issue them.[Edit by LadynRed on Thursday, February 6, 2003 @ 09:08 AM] Link to comment Share on other sites More sharing options...
Helper1 Posted February 7, 2003 Report Share Posted February 7, 2003 Thanks that is good information. Learn something new everyday. Link to comment Share on other sites More sharing options...
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