HELP!!! 1099-C and MBNA
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Posted by Totally Frustrated
(216.164.17.83) on February 11, 2004 at 11:13:01:
I have a real problem. In June of 2002, I was about to go BK. My largest Creditor was MBNA to the tune of about $45,000. (I had a client stiff me on funds, then go under, leaving me holding the bag for $40,000 of that). MBNA offered a settlement of $9000, with a 1 year payoff, monthly. I told them that a 1099 for the difference of $36,000 would kill me financially anyway, so.. thanks but not thanks and that I would have to file for Ch7. I had nowhere near enough equity in my home to cover the total of $65,000 debt I had from MBNA and several other sources. The rep. told me that MBNA wouldn't give me a 1099 and that they would put it in with other accounts that wouldn't get a 1099. I agreed to the settlement. In August, I asked again about the 1099 and was not only told that I wouldn't get one, but was also told that they were going to wipe the record clean as if I never had the account in the first place. I was very skeptical of this, but they assured me that it was ok. They already had June and July's payments with August's coming shortly. In Dec, 2002, I refinanced my house and was able to pay all my creditors (with various settlement agreements) and the remainder of the MBNA bill was paid by Feb, 2003. At that time, I spoke with another rep at MBNA and asked about the 1099 again. He said they ALWAYS give one and that he would check with his manager & get back to me. He didn't. However, since a 1099 didn't show up, I figured everything was good. Well, I just got a 1099 for $36,000 from MBNA! Now the same rep I spoke with, tells me she never said anything about me not getting a 1099! I transcribed every conversation I had with those guys and they supposedly do the same. The funny thing is, my records and their records are almost identical... except for the 1099 stuff. MBNA told me there is NOTHING they can do about it and basically called me a liar. I tried going over everyone's head to get a resolution to this "bait & switch" that was apparently done just to keep me from filing Ch7. Nothing came of it. Now what??!! I can't pay the tax bill and don't know how to get out of it either. I should have just filed Ch7 and left them all holding the bag. Now, I am not only screwed for the $40,000 that my bankrupt client stiffed me for, I'm getting a tax bill as if I had earned $36,000!! I know that what they did was highly unethical. But now it's my word (and tons of notes in my ACT Program from our conversations) versus their word and their notes on the same conversations. I doubt there is much I can do to fight them. I'm simply looking to at least do some damage control so I don't go under. Does anyone have any information as to what I can do about this? I find it hard to believe I'm the only one who this has ever happend to. Help! Thanks
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