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How to get a case dropped/debt cancelled without IRS tax liability?


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Hi all - 

I recently had my case against LVNV Funding dismissed by a county court judge, WITHOUT prejudice, and want to make an offer to LVNV Funding to officially close the case in exchange for the equivalent $250 filing fee for JAMS.  I don't want to admit any debt and I don't want them to be able to file a 1099C to the IRS for "cancelled debt".

Does anyone have experience how to write such a communication when offering money to close a case with a JDB?

Thanks!

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Why do you want to do this?  If the court dismissed the case, it IS closed.  Yes, it's true that if it's "without prejudice," they can sue you again.  But it's very unlikely that they will.  If they actually do, it's a matter of rinse and repeat.  File the MTC Arb again.  If they dismiss the second time, in most states, the second dismissal is with prejudice.

You won.  Accept your victory, and let the sleeping dogs lie.

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1 hour ago, nobk4me said:

Why do you want to do this?  If the court dismissed the case, it IS closed.  Yes, it's true that if it's "without prejudice," they can sue you again.  But it's very unlikely that they will.  If they actually do, it's a matter of rinse and repeat.  File the MTC Arb again.  If they dismiss the second time, in most states, the second dismissal is with prejudice.

You won.  Accept your victory, and let the sleeping dogs lie.

Thanks for the response.  I was under the understanding that I would need to proceed, otherwise they will file the suit again, and a judge in the local court system my frown upon the fact I didn't proceed with the private arbitration, and could even choose not to grant another round of MTC.  I'm not sure how to know for sure.

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When settling, make sure the terms contain verbiage to effect that you don't admit to the debt and are only settling as a matter of expedience. Even then they will probably 1099, so you dispute it with IRS, pointing to the settlement letter. In my experience IRS goes back to debt collector and that's when they all give up.

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22 minutes ago, matt123 said:

Thanks for the response.  I was under the understanding that I would need to proceed, otherwise they will file the suit again, and a judge in the local court system my frown upon the fact I didn't proceed with the private arbitration, and could even choose not to grant another round of MTC.  I'm not sure how to know for sure.

I don't know the arb law in your state, but in Ohio there are two precedents that state it is the plaintiff's responsibility  to initiate arbitration.  See Capital One v. Rotman and Discover Bank v. Bennington.  The reasoning in these cases should apply to you as well.  What are you supposed to do, file an arb claim against yourself?

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