I filed bankruptcy and did not reaffirm my car, I told the bank to come pick it up which they did. They put it on my credit as a Repossession. I thought it was supposed to go on there as either Charge Off or Voluntary Surrender. What is the SD? Do I need to dispute my credit report?
They listed it properly. I’ve seen this discussed on other boards.
Voluntarily or involuntary makes NO difference… they still POSSESS the car, and you possessed it before, so it’s a repo.
Either you fulfill the terms of the note by paying off the loan and gaining title, or selling the car and using the proceeds to satisfy the terms of the note OR your credit report may show a repo.
I just came through bankruptcy, I’m not trying to bust your balls or anything, but that’s how it is.
PS- That’s a… unique user name. I remember that old series of videos. Sure was a lot of “hey, watch this!”
PPS- You just came out of bankruptcy. Do not concern yourself with your credit report; concern yourself with not EVER owing anyone anything ever again.
The only thing you can do is contact the lender and offer to pay the difference between what you owed and what they got at auction. Sometimes they will work with you like that. Otherwise it is on your credit report for 7 years.
This happened to me about 12 years ago. The lender sent the difference out for collection, then finally issued a 1099 to me as income, and charged it off. The IRS came after me to pay taxes on the difference between what I owed and what the car sold for. I didn’t get a tax refund for a couple of years.
That’s odd. I usually only hear of 1099s getting issued when you agree to settle a debt for some percentage of what was owed.
I think they did it just to screw me. Thay stood to gain nothing; whether they write it off as a bad debt or a business expense, the net tax savings to them is the same.
I don’t think their writing it off is actually the element that makes the 1099 legitimate.
Writing a debt off if an ACCOUNTING move internal to THEIR accounting. It has no relationship to YOU, and it doesn’t discharge your debt to them.
Most places would write your account off on paper and then proceed to sell the item into collections. If they sell it off to collections, no 1099 occurs, unless it occurs with the new owners of the debt.
I’d consult a tax professional if that happenned to me, but I suppose it’s rather late for that in your case.
Page 33 of this document:
http://www.irs.gov/pub/irs-pdf/i1099.pdf
appears to address that.