Jamkais1999 2 Posted September 4, 2018 Report Share Posted September 4, 2018 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? Quote Link to post Share on other sites
texasrocker 451 Posted September 4, 2018 Report Share Posted September 4, 2018 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. Quote Link to post Share on other sites
Clydesmom 1,217 Posted September 4, 2018 Report Share Posted September 4, 2018 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. 1 Quote Link to post Share on other sites
Goody_Ouchless 506 Posted September 4, 2018 Report Share Posted September 4, 2018 3 hours ago, texasrocker said: JDB's rarely send a 1099 Yea...incorrect. Quote Link to post Share on other sites
Clydesmom 1,217 Posted September 4, 2018 Report Share Posted September 4, 2018 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. Quote Link to post Share on other sites
Goody_Ouchless 506 Posted September 4, 2018 Report Share Posted September 4, 2018 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. Quote Link to post Share on other sites
inegoti8 0 Posted August 2, 2019 Report Share Posted August 2, 2019 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. Quote Link to post Share on other sites
