civil collection

What is the name of your state? Georgia

I live in Decatur Co. I won a civil judgement on 17 Dec 03. the thing is,this person says he will never pay me and there is nothing i can do about it.i have started a fi-fa and leavy,but he does not have anything.i do know he makes money under the table and has his ssi d/d in to his bank account. so what can i do to bring this fool down to earth? i can have him arrested and held for contemp of court till i am paid? i won out of default an i found out that he has been sued a # of times.
please help asap

You can't have anyone arrested for not paying on a judgement. You recieved a court order allowing you to collect a legal debt. He did not recieve a court order ordering him to pay you the money. His income cannot be touched, in fact, you could get in trouble attempting to collect from his SSI benefits. Some folks are considered judgement proof, you may have found someone just like that. I wrote off a judgement last month, there is no way for me to collect on it. The debtor will be thrilled when he gets his 1099C statement in the mail soon, yes, he is going to have to pay taxes on the $4000 he owes me.

"so what can i do to bring this fool down to earth?"
*** Based on your post, there probably isn't really much you can do..... as it sounds like this guy may be 'judgment proof'. That means he doesn't have sufficient assets, over and above the state allowed expemptions.

"i can have him arrested and held for contemp of court till i am paid?"
*** No you can't. We got rid of debtor prisons long ago. You can however have him properly served with notice of a 'debtors exam' (or similar in your state) and if he fails to show as ordered, could then request a contempt warrant to be issued. And then, he would only be detained until such time as he complied with the order, not until payment is made.

"The debtor will be thrilled when he gets his 1099C statement in the mail soon, yes, he is going to have to pay taxes on the $4000 he owes me."
*** Interesting.... but not true.

According to the IRS, the following businesses are the ONLY ones who can file a 1099-c on a debtor:
"File Form 1099-C, Cancellation of Debt, for each debtor for whom you canceled a debt owed to you of $600 or more only if:
1. You are an entity described under Who Must File below and
2. An identifiable event has occurred. It does not matter whether the actual cancellation is on or before the date of the identifiable event. See When Is a Debt Canceled on page AC-3.

"Who Must File:
File Form 1099-C if you are:
1. A financial institution described in section 581 or 591(a) (such as a domestic bank, trust company, building and loan or savings and loan association).

2. A credit union.

3. A Federal government agency including:
1. A department,
2. An agency,
3. A court or court administrative office, or
4. An instrumentality in the executive, judicial, or legislative branch of the government, including government corporations.

4. Any of the following, its successor, or subunit of one of the following:
1. Federal Deposit Insurance Corporation,
2. Resolution Trust Corporation,
3. National Credit Union Administration,
4. Any military department,
5. U.S. Postal Service, or
6. Postal Rate Commission.

5. A corporation that is a subsidiary of a financial institution or credit union, but only if, because of your affiliation, you are subject to supervision and examination by a Federal or state regulatory agency.

6. Any organization, a significant trade or business of which is the lending of money, such as a finance company or credit card company (whether or not affiliated with a financial institution). The lending of money is a significant trade or business if money is lent on a regular and continuing basis. Proposed Regulations section 1.6050P-2(b) lists three safe harbors (see Safe harbor rules below) under which reporting may not be required for the current year. The Proposed Regulations may not be finalized in 2004 and, therefore, will not be effective for 2005. You may rely on the Proposed Regulations to determine whether your organization has a significant trade or business of lending money."
Source: http://www.irs.gov/instructions/i1099ac/ar02.html#d0e200

The debt was a business, not a personal debt that was cancelled. Through this business we extend financing for the purchase of computers and other equipment. And of course we have to borrow the money to buy the equipment we sell. The debtor used SBA funds to establish a business front, obtain financing for equipment through my business and others then claimed everything was stolen. He had no insurance (of course) and thought he could walk away scott free. It was actually an IRS agent that suggested the 1099C claiming the guy can hide from me but not the IRS. The $4000 hit was about 15% of our 2002 profits from the company, that's how small we are.

Okay.

However, it would have been nice to clarify that RIGHT to file the 1099-C in order to prevent others (like this writer) from assuming that ANY creditor could do this...... huh???

10-4 for 1040.