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Old 02-07-2013, 09:45 AM
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greazzer greazzer is offline
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Join Date: Sep 2010
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Howdy,

My bad for not carefully reading your thread. Sorry. EX-Wife should have clued me in. Too much cold medicine I guess.

Does the creditor have both of you on the loan documents? If so, the divorce decree just orders one to pay it off, unless the creditor was part of the divorce proceedings. If the creditor wrote off the debt completely, meaning you never owe them a penny, then you might owe taxes. The first thing you will get is a 1099-C from the creditor.

After a debt is charged off as a "bad debt", the collection process still moves on. It is just a mechanism for mostly revolving credit. What ends up on the credit report is a R-9 (for revolving); or I-9 (for install loans), et cet. Generally, once the creditor determines you went 8 or 9 billing cycles "deliquent", they generally have to write the debt off as "bad". So, did the creditor really write off the debt as a total loss ? The amount written off needs to be $600 or more, unless the law has changed. If you get a 1099-C, then there used to be an IRS form where you answered a few questions to determine if you owed the money or not. So, I would just wait until I got a 1099-C. Again, sorry for my super poor job of reading your thread.

Last edited by greazzer; 02-07-2013 at 02:00 PM. Reason: misread the post in its entirity -- my bad
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