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trillhog
Elite Membership
Member since Jul 2011
18772 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)

quote:

I would still feel like I backed out on a debt. Because that's what happened. Somebody somewhere got left holding the bag and that was BOA. I would consider it settled if she sent the credit card company what she initially owed them.


meh, business is business, they take on the debt with a high interest rate knowing that default risk is high, if the statute of limitations has passed it's time for everybody to move on, don't send in anything.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
I'm just saying that's the kind of person I am. It would eat at me until I paid them.


trillhog
Elite Membership
Member since Jul 2011
18772 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

I'm just saying that's the kind of person I am. It would eat at me until I paid them.


yeah but no sense in throwing away money once what's done is done.


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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
10176 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

I would still feel like I backed out on a debt. Because that's what happened. Somebody somewhere got left holding the bag and that was BOA. I would consider it settled if she sent the credit card company what she initially owed them.


I guess I can understand feeling that way, I just don't feel that way myself.

Based on the OP's timeline, it sounds like this collector called recently, which means that the debt was most likely sold within the past couple of months. If so, that means that BOA sat on it for 6+ years before they decided to do something with it.

BOA basically took a little money to completely wash their hands of this so I just feel like the obligation doesn't exist anymore.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
If I weren't going to square it away with BOA, I wouldn't square it away with anybody.


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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4884 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

I would still feel like I backed out on a debt. Because that's what happened. Somebody somewhere got left holding the bag and that was BOA. I would consider it settled if she sent the credit card company what she initially owed them.


I get what you're saying but BoA sold that debt a long time ago and probably wouldn't even accept the payment. Since the collection agency owns it, paying BoA won't get the CA off her back anyway.


ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
ok just called them and he says statute of limitations is not applicable to this and the $15000 will be reported to the IRS as unearned income.....the guy was a real jackass


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
13257 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
He's correct about being able to report it as unearned income. They can hit her with that one.

quote:

Months after successfully resolving credit card debts, consumers may receive 1099-C "cancellation of debt" tax notices in the mail. Why? The U.S. Internal Revenue Service considers forgiven or canceled debt as income. Creditors and debt collectors who agree to accept at least $600 less than the original balance are required by law to file 1099-C forms with the IRS and to send debtors notices as well. Taxpayers must report that portion of forgiven debt as "income" on their federal income tax returns.

Read more: LINK
Compare credit cards here - CreditCards.com


theOG
Oklahoma Fan
Member since Feb 2010
4367 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

ok just called them and he says statute of limitations is not applicable to this and the $15000 will be reported to the IRS as unearned income.....the guy was a real jackass


go see an attorney. one phone call from an attorney and the whole thing will be taken care of. if you were in louisiana, i could take care of this for you in five minutes and i wouldn't charge you anything.

This post was edited on 6/12 at 3:09 pm


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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
so adding another $15000 to her income taxed @ her tax rate or paying $2300 today to settle this is the issue at hand?

I don't get it....Im not a tax man, I have a CPA who does all my taxes. So regardless of the SOL she's gonna get hit with $15k in income? That sounds ridiculous

Thanks for the offer OG I appreciate it. I don't really have any attorney friends to ask..
This post was edited on 6/12 at 3:10 pm


JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4884 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

I don't get it....Im not a tax man, I have a CPA who does all my taxes. So regardless of the SOL she's gonna get hit with $15k in income? That sounds ridiculous


No, he's full of shite. Tell them to send her a letter or bill. Respond to that with a "validation letter." Google it for a template. When they can't "validate" the debt, send them a cease and desist letter. He's using all their sleazy tactics to scare you into paying. You're outside the SOL. They have no recourse.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
The taxable amount at 15% tax rate would be $2,250 for the full $15,000. They could get you to pay them $2300 and then still have $12,700 that they ding them for which at 15% would be $1,905. So a total liability of $4,155. I would just tell them to piss off.

These collections company people are scum. They've called and harassed me before because I have the same name as some dickhead who owes money. They just blindly call around based off of name, or phone number, etc.


JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4884 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

The taxable amount at 15% tax rate would be $2,250 for the full $15,000. They could get you to pay them $2300 and then still have $12,700 that they ding them for which at 15% would be $1,905. So a total liability of $4,155. I would just tell them to piss off.


Exactly. You're more likely to owe the IRS for settling than just ignoring it.


ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
Thanks again guys, the money board is better than an attorney!


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
13257 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
I'm not saying she'll get hit with $15k in income. I'm saying the law says that she can get hit with income for the owed debt. I have no idea how the final number is calculated.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58406 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

I have no idea how the final number is calculated.


I just showed you. At a hypothetical current tax rate of 15%.


the LSUSaint
LSU Fan
Member since Nov 2009
5209 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
The "income" would be on the original balance, right? Not on some ficticious penalty and interest charges. How would those charges be "income"?

So, if she skipped out on 3k, that should br the IRS amount turned in.


ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
10176 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
quote:

The "income" would be on the original balance, right?


It depends.

Most likely, the $15K figure came partially out of their ass. I say partially because what they probably did was take the past due APR and applied it retroactively even though BOA charged it off.

If BOA didn't charge it off it might be legit. But I can imagine any scenario where BOA would allow a non-performing asset to stick around for 6 years.

So yeah, in short, the $15K is probably horses shite.
This post was edited on 6/12 at 4:32 pm


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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
Thanks for all the advice.i spoke with him requested a validation letter and he says he will be sending it tomorrow, when I get this letter what's the next step if you don't mind me asking? Worst case scenario is she will be taxed on $15k of income but not owe $15k correct?
This post was edited on 6/12 at 6:30 pm


JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4884 posts

re: Need help resolving fiance's credit card debt issue(seeking collection)
If and when you receive the letter, send them a cease and desist letter. (Google for a template) You're outside the SOL so they're not reporting anything to the IRS. That debt was charged off years ago. They're just being sleazy debt collectors.

ETA: NEVER admit the debt is your's either, especially in writing.
This post was edited on 6/12 at 7:15 pm


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