This company has threatened to file form 1099 C with the IRS against me, so that any tax return I may be entitled to would be dimished or taken. This debt is about 3 years old.
I had a motorcycle accident about 3 months after buying this vacuum, and had financed the cost of the vacuum. I still made payments for as long as I was able, but I lost my job due to my injuries. I lost my place to live, and several months later, had a divorce with my wife. I have been rather low and unable to pay even monthly 'survival' bills without assistance for almost 3 years.
I just started to reach a point where I was getting on my feet. I was going to buy a truck with my tax return so I could start a second job, and be able to get all my debtors paid off. I owe less than $10,000 dollars.
If they take my tax return, then I am just as bad off as I started. I need a vehicle, there is no public transportation in my city.
I read the IRS's web site about this form, and who can file it and how it works, but I do not quite understand how this will affect me and my 2008 tax return. The total debt to this debtor is $1109.
Can they do this? What is the effect? I told them from day one what was happening, and kept them informed all along the way, shouldn't they have to wait? I have even been homeless for several months, and ended up sleeping on a family member's couch. What are my options here? Can I do anything to help myself? I am living pay check to pay check now, with less than $20 a month to spare, and I have other debtors! This is why I was going to get a second job with the acquisition of a vehicle.... Anybody got any experience with this?