Re: charged off account
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Posted by LadynRed
(199.91.33.254) on April 07, 2003 at 10:18:32:
In Reply to: Re: charged off account posted by Dignout on April 06, 2003 at 15:49:33:
Dignout, you are correct, 1099's are sent out, usually, when you settle. However, they are NOT mandatory and the creditor or CA can simpley turn around and sell the remaining balance to yet another collector and you start all over again. A 1099-C is only issued for amounts of $600 or more of 'forgiven' debt. The guy who works for the 'credit report cleaning' place is WRONG. They do NOT have to issue 1099's for charge-offs - in fact, I've never seen one for a charge-off. They get their tax write-off and then the sell the account to a CA and they make some money back that way.
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