Jamkais1999

If I beat midland funding in court, will I get a 1099 later???

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I’ve heard of you settle credit card debt you end up with a 1099 later at taxes. If I win in court, will I also get one of these?? Also, if I win, will it be cleared off my credit report?

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Depends if it is an OC or a JDB lawsuit.  JDB's rarely send a 1099 while OC's almost always will. 

A charge-off will remain on your credit report for seven years.

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3 hours ago, Jamkais1999 said:

Also, if I win, will it be cleared off my credit report?

Depends on HOW you win. If they simply drop the case then no it will not be eligible for deletion.  If the court actually issues a ruling in your favor stating you do not owe the debt then the bureaus will accept that as proof that it is not yours and remove it.

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3 hours ago, texasrocker said:

JDB's rarely send a 1099

Yea...incorrect.

 

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22 minutes ago, Goody_Ouchless said:

Yea...incorrect.

 

I know right?  I hear more complaints about PRA and Midland sending 1099 forms YEARS after the default creating tax problems.  

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When I researched mine it was clear that it's (another) automated process that comes with being in the finance game. There are ways to beat it, after the fact, and, as some have claimed, to get the "settlement" accounted for in such a way as to prevent a 1099. Still, in most cases, anything logged as "debt forgiveness" is going to generate data for IRS.

Back to the original question, if OP "wins" in court, then there should be no "settlement" on record and nothing to generate a 1099.

 

 

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A few years ago some JDB’s were handing out 1099’s on tons of  accounts for tax write offs. This only happened 1 tax season. I’m not sure how legal it is for a JDB to issue a 1099 but I read that it blew up in their faces. You should not receive a 1099 from Midland. If you do, it should only be for the amount paid on your account. Meaning what the JDB purchased your individual account for. 

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