walterg55 Posted February 23, 2007 Report Share Posted February 23, 2007 I receive a 1099-c for the balance owed from a car repo from the original lender. I know that I must pay tax on the amount in question. I have not been able to find the answer to what I thought was a simple question. Where do things stand as to further collection activity from a JDB. I would assume I owe them nothing. I clearly must pay the IRS.Would it not be in my best interest to try and get an original lender to issue a 1099-c since tax rate is only a percentage of the income. I understand this doesn't help my CR but I am trying to forestall the possibility of any judgement by a JDB or other party. Link to comment Share on other sites More sharing options...
willingtocope Posted February 23, 2007 Report Share Posted February 23, 2007 As far as I know, there hasn't been a definitive court case that answers your question. IMHO, the 1099c from the creditor essentially cancels the debt and they should not resell the balance to a JDB. Therefore, any further attempts to collect on it should be a violation of the "attempt to take an action that cannot be taken" provisions of the FDCPA. But...I'm not a lawyer. Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted February 23, 2007 Report Share Posted February 23, 2007 I can only speak to my experience and what my the tax guy told me.. but again there may be no answer..I had three last year.. and once it was counted as income I have not heard from an other collector on those accounts since... my tax guy said they can't come after it since its been claimed as income.. now can and will as we know are two different things sometimesbut on mine.. I was told keep the 1099 of course.. but once I got mine and filed.. alll was quiet Link to comment Share on other sites More sharing options...
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