Re: Why chat your post is

Posted by Why Chat (209.240.222.130) on April 14, 2002 at 17:48:53:

In Reply to: Why chat your post is posted by Brandon on April 14, 2002 at 16:39:01:

You are confusing 2 seperate issues. The 180 day requirement is to prevent lenders from evading the banking laws on interest and late charges. Once it is "charged off" their regular accounts the extra fees are no longer allowed. THEN if they delete the debt completely, (a write-off) they are required to issue a 1099c. If they assign the debt to a ca, it is NOT written off. If they sell the debt to a ca,it is NOT written off. If YOU settle with whoever has the account for say 50%, they can EITHER write-off the balance and issue a 1099c- OR resell it to another ca,in which case the whole collection deal on the BALANCE starts again. If you NEVER pay anything on the debt,it is still a "collectible" account and there is NO write off amount to be taxable.

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