if they don't know where you live or work, walk. Work is the most important part re: garnishment of judgements, if they dont have your work name/address, then they will never get your cash.
A previous poster asked a question about the IRS and chareoffs. There are no tax ramifications to a consumer from a chargeoff. If the debt is negoiated downward, and the difference is $600 or more, the institution is supposed to issue a 1099C. Sometimes they do, sometimes they don't.
Am I understanding what everyone is saying? You can walk away and hide out for a few years then dispute like hell or wait until the SOL is over then start over again. How would a person survive? Do they get secured cards or become an authorized user? Can they still rent an apartment? What happens if they want to buy a house? Also...once the SOL is over, can the creditors ever sneak back and try to attack again? I do have one last question...can someone pick and choose which bills to pay or should they walk away from everything? Would other creditors get wind of chargeoffs and raise the interest rates on their credit cards?
Also...how likely would Capital One, Providian and MBNA sue for a total of $35000 in debt. What is the likelihood they would try to garnish my wages? Does California offer any protection against creditors?
I think they send out 1099s on "settled for less than full" accounts, not chargeoffs. But I could easily be wrong on that. Either way, according to my tax advisor (a former IRS agent) you don't owe taxes on this amount if you are insolvent.
I was always under the impression( from what I read) that any unpaid debt that has been charged off by the creditor, is considered income on behalf of the debtor. If this is the case, couldnt they send out a 1099 for this very reason? Just wondering, income is income...
Godaddyo, Just because something has been chargedoff, it doesn't mean it can't still be collected. It's still there, still owed and, someone may collect it in the future. In the event of a settled or negoiated outcome, the debt is erased. That is when the IRS says a taxable event may have occured.
I heard that if you acknowledge an old credit card debt to a collector you restart the SOL. For example, if the collector says, "I'm calling about your XYZ credit card account, you remeber that account don't you?" And you respond, "yes". That acknowledgement restarts the SOL of an old debt. Does that sound feasible?
Many state laws I've read specify that it has to be in writing. To check your state use http://www.lawdog.com
Are credit card accounts considered open ended accounts or written contracts in Louisiana when it comes to the SOL?
