theuniverse

ARBITRATION has commenced with jams Need some help!

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Good ?

 

A voluntary dismissal with prejudice, They did not win or lose so what proof will they have, They bought a junk debt and could not sue for it because they did not due there home work !!!   I would argue it's there problem you/I did not sell them an uncollectable debt and that the JDB should seek relive from the seller of the debt the OC.

 

Full discloser I don't know,  But for those who like to poke the bear and seem to like pursuing this stuff.

 

I ask if they can't, But they still try to, are there any violations by them doing so.   

Also if they file a 1099C what amount would they list, the amount they actual paid for the junk debt (pennies on the dollar or what they think they would have got awarded to them if they had won ???     

 

It would seem to me that the IRS is only concerned with actual $$$ amounts paid and will require proof from the JDB  for his claim.

IRS tax codes are just as foolish as our court systems so I would not be surprised to hear the answer go one way or the other  

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I made sure Discover's lawyers included "no 1099C will be issued" in Settlement agreement just in case eventhough by law they are supposed to report it depending if it's whether "written off" or forgiven" not very sure about that . I never received no 1099C by the way, maybe because Discover never proved I owed it. Even if I would have received 1099C, the IRS won't tax you on it as long as you can prove you were insolvent at the time when the debt was forgiven which I was.

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I have received a 1099 for the case that I was involved in.  It was for the amount they paid me in settlement. 

 

I received a 1099C in another case where they walked away, but I was insolvent on paper that year for the IRS, so it had zero effect.

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@CCRP626

 

I have never recieved a 1099 for a case that they dismissed with prejudice.  I have only *sometimes* gotten a 1099 when they paid me a settlement check.

I was sued by HSBC in 2009 carrying over into 2011.  I MTCed and initiated in JAMS.

 

Their attorney offered me a mutual dismissal "with" prejudice to avoid the JAMS end.

 

HSBC would not sign off with either a no 1099C or tradeline removal.

 

HSBC sold this account to Cap 1, who in turn issued me a 1099C for forgiven debt just this year... for 2014.

 

I never had a Cap 1 account and the fact that an HSBC suit was dismissed with prejudice held no weight with them as they said I still owed it. Even though it was never proven anywhere that it was my account or that the amount was correct. The 1099C was for a little more then 2/3 of the amount HSBC claim.

 

I did not fight it as I had no taxes to pay on this,  but of interest.. while arbitration is a great weapon, it is no guarantee that something won't pop up tpo bite you.

 

In addition, even though HSBC sold the account to Cap 1, They still are reporting it as a sold account on my credit reports. Cap 1 never did report it.

The tradeline  be falling off very soon as the default date goes back to 2008.

 

However, the latest Equifax credit report is showing HSBC now is posting this account on the good side of things.... as sold and written off, but with a new drop off date of 2021.  ( I missed the date to dispute this and need to buy another report to do so)

 

All on all... I am a very strong proponent of arbitration, but do know you need to be vigilant.

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