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Followed Into Arbitration by Velocity


Xtreme98
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  • 3 weeks later...

I understand the JDB decided to 'settle' just prior to their deadline of having to make a sizable payment to continue arbitration.  From court to arb, I know this has been going on for two years -- so CONGRATS @Xtreme98!!!

Does anyone know the likelihood of JDB sending an IRS form 1099 to OP for the difference between total alleged amount owed and actual settlement amount?  I've read when it does happen, it seems more likely when dealing with an OC than a JDB -- but JDBs certainly have done it.  I was wondering if anyone has thoughts on how pervasive this is?

Is there a benefit in the form of a tax write-off when an OC or JDB does this?  I can't imagine they would do it "just because."  On the other hand, the JDBs especially are the lowest of the low IMO.

Thanks,

Jimmy

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@Mistymouse4590 Indeed this was settled on the 10/19. We came to a mutual settlement after a bit of back and forth countering. Looking back im not sure if this case could have went anymore perfect. Ideally we want an outcome of $0 and a mutual walk away with prejudice but every situation is gonna be a bit different. I do honestly believe had I held on just a bit longer that would have been something i could have achieved.   It was long and drawn out but at the end of the day its over and I am ready to move on with my life.

I followed all the advice from the members on the site and stuck with @fisthardcheese arbitration instructions exactly and it could not have went any smoother. The process should not be scary. Although it was a huge weight and worry on my shoulders everyday. If you follow the procedures and do just a little research you can beat these clowns.

So long story short the JDB followed me into arb. It cost me $250 with JAMS to file and then Velocity paid $1500 to follow. After that it was up to us to mutually decide on an arbiter.  There was a list of 5 arbiters sent. I sent my top 2 to the attorney and they choose the arbiter that had a 7k per day fee. There are also many other fees that can be added along the way. It was this attorneys first time in arbitration so I honestly don't think she had much knowledge of how the fees worked. 

After the arbiter was decided they sent Velocity a 5k retainer to get started. The other fees would have been added at the end I would assume. The lawyer took her time as she did with every thing else. They finally contacted me about a settlement. I politely declined and countered. Now, Looking back I have to say that it was likely very possible to walk away unscathed from this however I wanted it finished. They re-countered my offer and again i declined sticking with my original offer. 24 hours later confirmation email stating they had accepted my offer.

The original debt would have been null to them and they would have likely payed more at the end of this than the actual starting debt had it went that far. So i doubt they made much if anything after the initial court filing and then following into arbitration. I can easily say this is a win for me. Some might feel otherwise but its what i felt best about.       

I could list many names here at the end but i'm sure i would forget someone. With that being said I want to thank each and every great soul that helped me along this journey. We had two cases and the first was dismissed without prejudice before entering arbitration and then this one.  Absolutely could not have done this with out you great guys and gals.

 

Lets go Brandon!                                                                                                                  

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I just want to say that a win is something that the OP can agree and live with, whatever that might be. For some, that is paying some money but not the full amount, for others, that is an outright dismissal without paying anything. Each situation and person is different so if you are happy and can live with the settlement, you have won.

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On 10/20/2021 at 10:07 AM, Jimmy E said:

Does anyone know the likelihood of JDB sending an IRS form 1099 to OP for the difference between total alleged amount owed and actual settlement amount? 

This tends to be automatic, as there are IRS rules that they need to follow. The way I got around it was that lawyer put language in the settlement that said we settled for the sake of convenience and did not admit to any debt. I had to go back and forth with IRS, but they eventually squelched the 1099.

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8 minutes ago, Goody_Ouchless said:

This tends to be automatic, as there are IRS rules that they need to follow. The way I got around it was that lawyer put language in the settlement that said we settled for the sake of convenience and did not admit to any debt. I had to go back and forth with IRS, but they eventually squelched the 1099.

That is good information to have. 
 

In my case, I was under water the entire time. I did get notices from the IRS requesting me to pay, so I typed up and signed statements with my assets and liabilities at the time of settlement, showing a negative net worth.  The IRS accepted that. 

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