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I am self employed Can a collection agency file a 1099 and garnish your tax return if the debt is over six years old and the debtor has been in Ohio for six years?
A collection agency has no legal powers. Some agencies are collection attorneys who can file lawsuits. Regardless, no one can seize another person's property without due process according to the persons state of residency laws. In other words they have to take you to court, win a judgment, execute the judgment, this takes a considerable amount of time. The exception is child support and/or spousal maintenance, or a court order that was already in place.
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Can a secondary collection agency collect on a charge-off when the debt is over 3 years old and the original creditor has declared bankruptcy?
More than likely. Three years is not long enough for an SOL to expire. What probably happened was, the account was bought from the creditor, which is common practice. The BK …of the original creditor, has no relevancy if the debt was sold.
If it's been over 7 years should you pay off an old credit card debt from a collection agency or just let it go?
I was told this by a lawyer. If you have an old debt that is older than a couple of years "DON'T PAY IT". Don't even talk to debt collectors and if you do never promise to ma…ke any type of payment. The reason- A debt is only reportable for 7 years from the terms of the original contract. Each time you promise to pay any part of the debt you form a new contract, extending the time that the debt can remain on your credit report. Paying a defaulted debt, or making arrangements to pay can not legally extend the reporting period for any debt. That fact is established by the Fair Credit Reporting Act. Under certain state's laws, however, paying or making payment arrangements CAN re-set the statute of limitations. SOL is the time period during which a consumer may be sued to recover a debt. This is likely what the attorney was warning about, not the credit reporting period.
How long will bad debt credit cards stay on your credit report if you haven't made any payments on them and they have been in collections for over six years now?
Actually, the debt (as long as it isn't a bankruptcy or judgement) should be removed from your report 7 years from the date of delinquency. Many collection agencies will wait …months, sometimes a year + to put a negative item on your credit report. This way it will effect you longer, and you will be more prone to pay off the debt in the future. If this happens, dispute, dispute, dispute!!! Dispute everything on your report, especially the items that have been incorrectly reported. I recently had a few items removed completely from my report because I disputed the dates, and the creditor couldn't provide ANY form of documentation to support I even had a debt with them. Also, there are statues of limitations in some states on debt collection. How long is too long before someone can file a judgement, ect. For example, in Texas that limitation is 4 years for debt collection. See: http://www.badcreditmd.com/statuteoflimitations.html
While married and self-employed you filed joint tax returns with your now ex-husband who received tax credits for all the 5 years but you had a business so how do you get the tax credits split up?
Answer If the refund was made out to both spouses then it belongs equally to both unless or until a court rules otherwise. If the ex-husband forged the wife's sign…ature and cashed the refund check he may have some explaining to do on several levels. Be that as it may, the injured spouse's only recourse would be to file suit in the appropriate state court, (small claims being the best choice)to recover her share of the refund. The IRS will not pursue the matter for her unless wrongdoing is evident, (such as a fraudlent return) in which case both filers would be subject to an audit.
This is the SOL, ( statute of limitations for State Oral Agreements, Written Contracts, Promissory Notes, and Open Accounts.And the years they are still able to collect.Alabam…a 6 6 6 3 Alaska 6 6 6 6 Arizona 3 6 5 3 Arkansas 3 5 6 3 California 2 4 4 4 Colorado 6 6 6 6 Connecticut 3 6 6 6 Delaware 3 3 6 3 D.C. 3 3 3 3 Florida 4 5 5 4 Georgia 4 6 6 4 Hawaii 6 6 6 6 Idaho 4 5 10 4 Illinois 5 10 6 5 Indiana 6 10 10 6 Iowa 5 10 5 5 Kansas 3 5 5 3 Kentucky 5 15 15 5 Louisiana 10 10 10 3 Maine 6 6 6 6 Maryland 3 3 6 3 Massachusetts 6 6 6 6 Michigan 6 6 6 6 Minnesota 6 6 6 6 Mississippi 3 3 3 3 Missouri 5 10 10 5 Montana 5 8 8 5 Nebraska 4 5 6 4 Nevada 4 6 3 4 New Hampshire 3 3 6 3 New Jersey 6 6 6 6 New Mexico 4 6 6 4 New York 6 6 6 6 North Carolina 3 3 5 3 North Dakota 6 6 6 6 Ohio 6 15 15 ? Oklahoma 3 5 5 3 Oregon 6 6 6 6 Pennsylvania 4 6 4 6 Rhode Island 15 15 10 10 South Carolina 10 10 3 3 South Dakota 6 6 6 6 Tennessee 6 6 6 6 Texas 4 4 4 4 Utah 4 6 6 4 Vermont 6 6 5 6 Virginia 3 5 6 3 Washington 3 6 6 3 West Virginia 5 10 6 5 Wisconsin 6 6 10 6 Wyoming 8 10 10 8 This is some more info... Collections Action - A creditor or third-party collection agency can legally demand or request payment on a debt, via letters and phone calls, forever, as long as the debt remains unpaid. A debtor can order a third-party collector to cease communication, as per the Fair Debt Collection Practices Act, which should stop routine demands from that source. (See our Collection Agency FAQ for details.) In practice, the older a debt is, the less vigorous the collection efforts will be, and the more likely the creditor or collector will give up easily. And, unless the debt is secured by some type of property (e.g. a car), they cannot actually force a debtor to pay without a lawsuit. Lawsuits - When a consumer is seriously delinquent (late) on a debt for a significant amount, there is the possibility of the creditor filing a lawsuit. The time limit for doing so is known as the statute of limitations, which is set by individual states. The relevant statute is the one for the state in which the debtor resided at the time of the delinquency. The expiration of the statute of limitations covering a debt will not necessarily prevent a lawsuit, but it will provide an absolute defense, whereby the debtor is simply required to file a response with the court, pointing out this fact, in order to have the suit dismissed. Here is a chart with the statute of limitations for each state and type of debt. Judgements - If a lawsuit has already been filed and won by a creditor, there is another, separate statute of limitations for enforcing (collecting) the judgment. Here is a chart with the judgment enforcement time limits for each state. Federal Taxes - Ten years from the date of the assessment for delinquent amounts, unless a lien has been filed. Tax liens on, for example, real estate, remain until the back taxes have been paid. Student Loans - There is no statute of limitations or other time limit for lawsuits or other enforcement action on defaulted federal student loans. Credit ReportingThe time limits for various types of information to appear on consumer credit reports are set by the federal Fair Credit Reporting Act. Making payments or partial payments on bad debts does not effect the running of the credit reporting time limits, except in the case of tax liens and federal student loans. All other types of items should expire on schedule, based on the original dates, regardless of when or whether they are paid. There was previously a great deal of confusion over the starting point, which could have been interpreted as the date of the last activity on the account. This resulted in the possibility of "re-setting the clock" on an old bad debt by making a payment on it, or by paper-shuffling on the part of collection agencies. The issue was clarified in the 1996 amendments to the FCRA, which set a specific starting date related to the original delinquency date (see FCRA Section 605 (c) (1).) Inquiries - Two years. Late Payments - Seven years from the month in which the late payment was due. If there are multiple late payments in one account item, then they will each expire individually. Charge-Offs - Seven years. The time runs from the date of the delinquency, plus 180 days. If a payment was due on an account on January 1, 2000, but the debtor defaulted, and never caught up to become current again, and the account is eventually declared a charge-off by the creditor, then the seven year reporting time limit starts running on July 1, 2000, with the item scheduled to expire from his/her credit reports on July 1, 2007. Here is our article on charge-offs. Collection Accounts - Seven years. The running of this time limit is the same as with charge-offs. The date of delinquency still refers to the original delinquency with the original creditor, regardless of when the collection agency began working the debt. This includes debts that have been bought by a collection agency. Collection agencies cannot legitimately "re-set the clock." Lawsuits And Judgements - Seven years or until the governing statute of limitations has expired, whichever is longer. Bankruptcy (Chapter 7) - Ten years (from the date of entry of the order for relief or the date of adjudication. Bankruptcy (Chapter 13) - Seven years. Paid Tax Liens - Seven years from the date of payment. Unpaid Tax Liens - Forever (unless paid - see above.) Unpaid Federal Student Loans - Forever (unless paid, after which they can appear for seven years.) The above time limits apply to credit reports which would be available to creditors for most types of credit applications. However, the credit bureaus are legally permitted to disclose older information in the following situations: A credit application involving a principle loan amount of $150,000 or more. An application for a life insurance policy with a payout of $150,000 or more. An application for employment in a position paying $75,000 per year or more. Credit Problems Menu
All US states have a statute of limitations concerning the collection of debts. The longest SOL is 6 years, that being the case it is unlikely that the court would …allow a creditor or collector to file suit in an eleven year old case. Be advised, it is the responsibility of the debtor to use an expired SOL as a defense when faced with a lawsuit. Wages cannot be garnished without a valid judgment having been awarded by the court.
Depends on your states statute of limitations. If your state has a 7 year statute than no it can not. But they will try. If statute is not up yet but close to being up then yo…u can ignore their phone calls and mail and let it expire. If you respond it will re-age the debt. However, collection agencies will sell your debt to another collection agency when the statute of limitations on the debt is about to expire. When they do this, the time clock starts all over again and there is a new 7 year time limit. As a side note, you can always dispute this debt on your credit report. The original creditor must verify the debt and has 30 days to do so. If it has passed from collection agency to collection agency, then chances are slim that they will be able to verify the debt. This will likely come off your credit report easily. The original creditor has already written off the debt as a tax write-off. Just keep in mind that if it is sold to another agency, then it can go back on your credit report for another 7 years.
Generally not directly from the IRS (unless they are collecting a tax debt)...but that doesn't mean that once you receive it they can't.
It depends on the Statute of Limitations for your state. If it is longer than 7 years, then it is still collectable although it may have fallen from your credit report. If the… SOL is less than 7 years, they can still attempt to collect and even file suit. However, if you follow proper litigation procedure and use the expired SOL as an affirmative defense then no judgment should be granted against you. If you do not respond with a defense then they can get a judgment collection on a debt that is 50 years old! Sadly, collection "attempts" are never time barred. I am not an attorney but an avid reader/learner in collections.
Generally, they are claimed as a dependent and included with their parents. However, if that isn't the case, and they made income, they would need and want to. … See the q; How much income do you have to earn before you file income tax
If self employed last year and had no sales or tax withheld ie inactive do you still have to file a Schedule C with your Federal tax return and for tax purposes are you still considered self employed?
Your self employed as you said you are. You just need to show at what...and it was done in hope of profit, although maybe not making any (yet), and not as a hobby. (Any …employee income is additional....you can have both). It would seem the business you run was either inactive, or unsuccessful...filing a Sch C, proving a loss, which can be used to offset self employed income in other years (and some other income in current year), would be advantageous.
If they got a court order within 7 years of you getting the debt then they can but the amount of time and money they would have to put into it would make it impractical to do …this unless you owe over $200,000. If they didn't get a court order within 7 years then the debt completely goes away.
If it was a federal student loan, then yes, the collections agency could take your income tax return money. If it was a non-federal loan, then they would not be able. Secondly…, federal student loans are can not be discharged, the US always gets paid even when laws are created for private businesses that disallow the same right of collections.
Yes, it can be garnished by a collection agency (CA). What happens is that the original credit sells the debt to the CA. Then the CA owns the debt. The CA tries to collect fro…m you. If you don't pay, they can sue you. If they sue you and win a judgment, they can garnish your wages. Of course, the CA may be suing you for debts that are not yours or where the statute of limitations has expired! Learn your rights by reading up on the FDCPA.
Do you have to file taxes this year if you were self employed and will you get in trouble you i file for this year with next years?
Yes you can file but not for next years benefits because the irs doesnt know if you are still going to be imployed ans First self employed, not employed, etc makes no differ…ence. Many people don't work at all but have to file and pay a lot on tax. Tax (and if you need to even file) is a matter of TAXABLE INCOME, not how it was made. Interest paid on a bank account, money made selling a house (or a piece of art, etc), generally money just "given" to you are all taxable income. The major difference in self employed income and that from an actual employer is that one you report yourself (and/or is shown on a 1099 form) - and as a self employed you pay ALL the FICA Tax - and you had to make estimated quarterly payments during the year - or face penalty for not doing so when you file. An employee has a W-2 record (along with 1099s from other sources) and the employer pays half the FICA tax, and has withheld and paid to the IRS an estimate (as directed by the employee filing a W-4 form) payment out of every payroll. Additionally, You MUST file each year separately. A filing is for ONE accounting period, virtually always the calendar year. Laws, rates, forms and many things (even what is taxable or not) change each year. MORE THAN THAT - IT WOULD BE A DUMB THING TO COMBINE YOUR INCOME INTO ONE FILING....YOU WOULD PAY MUCH MORE TAX AND LOSE LOTS OF BENEFITS! (Higher tax bracket). Not filing when you should is criminal. Contrary to many peoples thinking, it does not drop off in any number of years. The laws are written so you may be audited or assessed for only a certain number of years back...COUNTED FROM WHEN YOU FILED A RETURN. Don't file and your always open to problems. That and many other things - including common sense being that the IRS doesn't say you don't have to file because it is good for you (if you don't have to and do file, there is no liability anyway, only good things can happen to you...like being paid the incentive a few years back)...they do it because it is good for them.
No. If the debtor has received notice that the debt has been cancelled (forgiven) they should receive a IRS form 1099-C as the amount of the forgiven debt is now considered ta…xable income. Given those circumstances, the debt no longer exists and is no longer collectible.
They are pushing your buttons. The original company has probably written the debt off and it is possibly off of your credit report. Do not pay them one red cent, or they w…ill be able to resurrect the debt.