wentbroke Posted January 13, 2008 Report Share Posted January 13, 2008 I hadn't paid Chase any money since June. I had two cards with them. Total owing of about $11,000. I got a letter in the mail from them offering to settle one of the cards. I called them. With minimal negotiation they agreed at 55% on both of them. It was pretty painless. She said something about it being reported as settled and paid on my credit report. She asked what happened because I was always regular on my payments. I told her a business failure. I apologized that it came to this. She asked if I was satisfied with the outcome. Hopefully, I will get something soon from Sam's Discover Card and my other Discover Card. Then I can work on paying off my lone credit card (had to keep one for emergencies).Funny thing, they told me about credit cards I didn't know anything about. Some Visa card with $8,500 of available credit. And a Sears (could that be a 3rd Discover Card?) with $8,000 available credit. They were suggesting balance transfers. Glad I didn't know about them cards. I might have tapped them also!The moral is just keep plugging away. Play it straight with them and eventually do the best you can. It's only money. Link to comment Share on other sites More sharing options...
willingtocope Posted January 13, 2008 Report Share Posted January 13, 2008 If you don't get your 1099c's soon after you send the checks, you might call and ask. If they don't show up this year, make up your own statement and file it with next year's income tax. Link to comment Share on other sites More sharing options...
txtrouble Posted January 15, 2008 Report Share Posted January 15, 2008 Willingtocope - why is that? Is that b/c if you pay tax on a forgiven debt, then its done with, they can't sell the balance to a JDB or something? I'm asking b/c i have a settled debt and I'm not sure if they are sending the 1099c or not and of course taxes are coming up. I forget the exact wording of the letter I got from the OC, but it said somethign to the effect that the settled amount has been accepted and will be considered paid or something like that. I need to relook at it. If that's the case, should I still make up my own statement if I don't get a 1099c? Link to comment Share on other sites More sharing options...
willingtocope Posted January 15, 2008 Report Share Posted January 15, 2008 Willingtocope - why is that? Is that b/c if you pay tax on a forgiven debt, then its done with, they can't sell the balance to a JDB or something? I'm asking b/c i have a settled debt and I'm not sure if they are sending the 1099c or not and of course taxes are coming up. I forget the exact wording of the letter I got from the OC, but it said somethign to the effect that the settled amount has been accepted and will be considered paid or something like that. I need to relook at it. If that's the case, should I still make up my own statement if I don't get a 1099c?Honestly, its unclear as to whether paying taxes on a forgiven debt makes it settled forever. Last time I looked into it, there were several court cases that said yes, but they were under appeal. I would still suggest making your own 1099c (if you don't get one from the creditor) because if the IRS finds out about the "forgiven" part, you'll not only owe taxes but penalty and interest for not claiming the income in the appropriate year. Kinda a Catch 22, I know... Link to comment Share on other sites More sharing options...
lostindebtinVT Posted February 9, 2008 Report Share Posted February 9, 2008 I asked the IRS about filing out your own 1099C if you did not get one, and they said "absolutely not" it has to come from the creditor and you can't file it until you receive it.If anyone has questions about filing these 1099C's please call the IRS they are happy to answer all questions pertaining to this subject and they have a department exclusively that deals with these issues.Unfortunately, I did not like what I heard, but it is the law and the rules and you have to follow them. I'm expecting a large 1099C the end of this tax year for $37,000 - ouch! According to the IRS I would be insolvent about $47,000 if they agree with my estimated values - so I will attach that 1099 to a Form 982 and send it to the IRS - as long as I never get audited, it is never questioned, if I do get audited they will question how I assessed my home value, how I valued my automoible, jewelry, home furnishings and etc. I used my town assessment which was just done by professionals and they came in my home, I used Kelly Blue Book for my vehicles in fair condition and I used the auction price for other items, it's between you and the IRS .. I just tried to be fair in my values in case I get audited and I printed out my balance sheet at time of settlement to hold in my tax records. Link to comment Share on other sites More sharing options...
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