creditsamurai Posted July 25, 2018 Report Share Posted July 25, 2018 I filed against First Premier recently and at the last minute they contacted me about a settlement. They will delete the tradeline in exchange for dismissal with prejudice of the lawsuit and agreeing to release them from the claims in the lawsuit. I like the basic outlines of the deal. I always wanted and deletion and not money. Is it asking for too much to not issue a 1099? Quote Link to comment Share on other sites More sharing options...
millyann Posted July 26, 2018 Report Share Posted July 26, 2018 You can ask for whatever you want. The worst they can say is no. Let them give you the offer in writing then negotiate from there. I have settled with many CA and JDB that cancelled debt or required the CA to pay it and have never been issued a 1099. YMMV Just recently settled with a CA and their attorney and refused to give them confidentiality for statutory damage amounts. The most important trait you need when negotiating a settlement is the ability to not get emotionally involved and be willing to walk. 1 Quote Link to comment Share on other sites More sharing options...
creditsamurai Posted July 26, 2018 Author Report Share Posted July 26, 2018 Their lawyer also wants a dismissal with prejudice. Why is that necessary? Quote Link to comment Share on other sites More sharing options...
millyann Posted July 26, 2018 Report Share Posted July 26, 2018 3 minutes ago, creditsamurai said: Their lawyer also wants a dismissal with prejudice. Why is that necessary? So you will not sue them again. It completely drops your claims from ever being sued on again. Really you have not gave much information without more background it is hard to give you solid recommendations. Quote Link to comment Share on other sites More sharing options...
Harry Seaward Posted July 27, 2018 Report Share Posted July 27, 2018 On 7/25/2018 at 4:39 PM, creditsamurai said: Is it asking for too much to not issue a 1099? Yes. The IRS says they are required to issue a 1099 on any cancelled debt over $600. @Goody_Ouchless successfully argued with the IRS that a debt he "settled" was technically not "cancelled" because it was never proven he owed the debt in the first place. The language of the agreement in his case had a 'no fault' type of provision where neither side admitted anything. Of course you can't force a JDB to not file a 1099, and it's actually in their legal best interest to do so, since not doing it could potentially land them in hot water with the IRS. It would just fall back on you later to dispute it with the IRS. In Goody's he was initially found to owe taxes on it, but he appealed it and the finding was reversed. So be aware you may have the same fate awaiting you. 1 Quote Link to comment Share on other sites More sharing options...
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