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fdoveel
Contributor ⭐
January 8, 2024

2004 Car Repossesion - Company threathenting to file 2023 1099-C

  • January 8, 2024
  • 1 reply
  • 1046 views

In 2004 my car was repossessed by Triad Financial Corp., and resold. Friday, January 5th I received a letter from Business Administrative Services LLC., on behalf of Oakfield Investments LLC., offering a one-time offer of $617.26.  If I do not pay this amount Business Administrative Services is saying they will to file a 1099-C for 2023 with IRS in the amount of $6,172.58. Is there a time limit on debt collection? Can they do this and claim this as income from 2023.  I am a retired 81 year old senior.

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    1 reply

    GailL1
    January 8, 2024

    From 2004 to 2024 is almost 20 years - so NO.  There is NO state with a statue of limitation of 20 years.  It probably isn't still on your credit report although IF you were ever sued over it, that could be still there and you need to check your credit report.

     

    Forbes.com - Statute Of Limitations On Debt Collection By State

    IMPORTANT:  READ ALL OF THE LINK ~ 

    From the link:

    You have three options when it comes to paying your time-barred debt:

    • Don’t pay. If you don’t pay, collectors can still call you. After all, you still owe the debt. Plus, the outstanding debt can still negatively affect your credit for up to seven years from the date of the original delinquency.
    • Pay the full amount. Paying your debt could improve your credit score and put a stop to persistent debt collectors. This might be difficult if you don’t have money for the payment.
    • Settle the debt. You may be able to negotiate a smaller payment with a collector. Just be sure you get a signed agreement that confirms you’re settling the debt, and keep a record of your payments. Debt settlement can still negatively impact your credit, but less so than nonpayment.
    • Make a partial payment. Paying a fraction of the debt can reset the clock on the statute of limitations. That’s why making a partial payment (or even promising to) isn’t typically a good idea.

    Before making a decision, it’s a good idea to consult a lawyer.

     

     

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