Quick 1099C question

[Duh]

Is there any point you are safe from worrying about getting a 1099C.

Last payments were March 2009.

Last phone calls on any accounts was from a JDB 2 years ago who did not even have the correct name of the old account

1 1099C in 2014 from Cap One when they bought an HSBC account I had been sued on and their local lawfirm dismissed the suit with prejudice in 2011 . They sold this and I got the 1099C in 2014.

There are other accounts and I am wondering how long I have to hold m breath and will that be forever?

Thanks

[nobk4me]

Bumping this.  I don't know the answer to your question, but I can give you my experience.

I defaulted in 2008, well over a dozen accounts.  I have only received four 1099-Cs.  All were in different years.  All were from OCs.  None from JDBs.

The most unusual one was from Chase.  This was an account that, according to my credit reports, was sold to a JDB.  Apparently the JDB sold the debt back to Chase, which promptly issued the 1099-C.  It was large enough that I had to file Form 982.  No problems with that, yet, from IRS.  

I think this was a result of the CFPB ruling on Chase.  The JDBs holding Chase debts couldn't sue on them, or sell them on, but could sell them back to Chase.

So I am guessing, in that kind of scenario, if a JDB sells the debt back to the OC, you could get a 1099-C at any time.

 

[Goody_Ouchless]

10 minutes ago, nobk4me said:

if a JDB sells the debt back to the OC, you could get a 1099-C at any time.

Good catch. Only one I ever got was from a settlement. Nothing on the dozen or more that were charged off, sold, and never sued on.

[Duh]

5 hours ago, nobk4me said:

Bumping this.  I don't know the answer to your question, but I can give you my experience.

I defaulted in 2008, well over a dozen accounts.  I have only received four 1099-Cs.  All were in different years.  All were from OCs.  None from JDBs.

The most unusual one was from Chase.  This was an account that, according to my credit reports, was sold to a JDB.  Apparently the JDB sold the debt back to Chase, which promptly issued the 1099-C.  It was large enough that I had to file Form 982.  No problems with that, yet, from IRS.  

I think this was a result of the CFPB ruling on Chase.  The JDBs holding Chase debts couldn't sue on them, or sell them on, but could sell them back to Chase.

So I am guessing, in that kind of scenario, if a JDB sells the debt back to the OC, you could get a 1099-C at any time.

 

Thanks for the reply,

Likewise I defaulted in 2008. Last payt was March 2009 on 18 accounts. 

I only got the one 1099 and that was after I got HSBC backed down when they sues me I took them to arbitration. Their hired local law firm wanted no parts of that so they dismissed  with prejudice. That was around 2010-2011 time span. Then HSBC sold this account to Cap 1. And Cap 1 issued the 1099. 

I beat back another JDB when I initiated in JAMS and they immediately caved and did promise a no 1099... in writing.

But I do not know where any of the others are, so this time every year I am holding my breath.

Thanks for listening....

[RyanEX]

FYI on 1099 debt cancellations, if you get one look into the IRS insolvency worksheet - you may be able to exclude the 1099 from your income.

[Guest usctrojanalum]

17 hours ago, nobk4me said:

I think this was a result of the CFPB ruling on Chase.

This is correct. Chase was given back a lot of accounts that it thought it washed it hands of. 

[Duh]

21 hours ago, RyanEX said:

FYI on 1099 debt cancellations, if you get one look into the IRS insolvency worksheet - you may be able to exclude the 1099 from your income.

Yes. I would do that.

I am in a situation that I do not do my own taxes and do not like the idea of having to explain to the guy who does what is up with that.

As it is... I do not have federal to pay, only state....

Insolvency is my name. Has been since 2008, and before. So I just hold my breath, say a prayer and hope every year out will get that further less likely.

Thanks.