written off card now in collections

[matyi3]

What is the name of your state? PA

My husband lost his job in 2004 and we fell behind in credit card payments. Many of the these accounts went to collections. We ended up paying them all off in the summer of 2005. We apparently missed one. Last December we got a notice from them stating that they were writing off the amount and adding to our 2005 wages. We lawfully added it in our tax return and claimed the amount, $600, as additional income and paid the taxes due.

Now we are getting harassing mail from a collection agency threatening us with a lawsuit unless we pay this account.

Are we legally bound or is the account settled if we claimed it as income?

I need to answer them in the next few days.What is the name of your state?

[debtcollector`]

Q: Did you receive a 1099 from the creditor?

Originally Posted by matyi3

We apparently missed one. Last December we got a notice from them stating that they were writing off the amount and adding to our 2005 wages. We lawfully added it in our tax return and claimed the amount, $600, as additional income and paid the taxes due.

If you didn't receive a 1099, it wasn't cancelled.

Originally Posted by matyi3

Now we are getting harassing mail from a collection agency threatening us with a lawsuit unless we pay this account.

Silly, how does one receive "harassing" mail. A lawsuit may be the end result of your not paying the bill.

Originally Posted by matyi3

Are we legally bound or is the account settled if we claimed it as income?

Yes, no one cares what you do -- other than your paying the bill, that is.

Now, if you received a 1099 before claiming the $600 as income, make a copy of it and send it and a letter stating there is no debt to the Ca.

DC