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re: Need help resolving fiance's credit card debt issue(seeking collection)
Posted on 6/12/13 at 2:41 pm to Broke
Posted on 6/12/13 at 2:41 pm to Broke
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.
1
Posted on 6/12/13 at 2:42 pm to trillhog
I'm just saying that's the kind of person I am. It would eat at me until I paid them.
Posted on 6/12/13 at 2:47 pm to Broke
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.
Posted on 6/12/13 at 2:55 pm to Broke
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.
Posted on 6/12/13 at 2:59 pm to ZereauxSum
If I weren't going to square it away with BOA, I wouldn't square it away with anybody.
Posted on 6/12/13 at 2:59 pm to Broke
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.
Posted on 6/12/13 at 3:02 pm to JonTheTigerFan
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
Posted on 6/12/13 at 3:04 pm to ThaBigFella
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
Posted on 6/12/13 at 3:08 pm to ThaBigFella
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 6/12/13 at 3:09 pm
Posted on 6/12/13 at 3:09 pm to VABuckeye
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..
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 6/12/13 at 3:10 pm
Posted on 6/12/13 at 3:18 pm to ThaBigFella
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.
Posted on 6/12/13 at 3:26 pm to JonTheTigerFan
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.
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.
Posted on 6/12/13 at 3:31 pm to Broke
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.
Posted on 6/12/13 at 3:35 pm to JonTheTigerFan
Thanks again guys, the money board is better than an attorney!
Posted on 6/12/13 at 3:59 pm to ThaBigFella
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.
Posted on 6/12/13 at 4:13 pm to VABuckeye
quote:
I have no idea how the final number is calculated.
I just showed you. At a hypothetical current tax rate of 15%.
Posted on 6/12/13 at 4:21 pm to Broke
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.
So, if she skipped out on 3k, that should br the IRS amount turned in.
Posted on 6/12/13 at 4:30 pm to the LSUSaint
quote:
The "income" would be on the original balance, right?
It depends.
Most likely, the $15K figure came partially out of their arse. 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 6/12/13 at 4:32 pm
Posted on 6/12/13 at 6:28 pm to Broke
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 6/12/13 at 6:30 pm
Posted on 6/12/13 at 7:13 pm to ThaBigFella
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.
ETA: NEVER admit the debt is your's either, especially in writing.
This post was edited on 6/12/13 at 7:15 pm
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