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About Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

Past/Present Clients
(private)

You are here: Experts > Shopping > Credit/Debt Management > Creditors and Bankruptcy > 1099C

Creditors and Bankruptcy - 1099C

Expert: Regan Shinski - 11/3/2009

Question
I am in the middle of working out final details for settlement in full with Wells Fargo Auto Finance here in Arizona. An agreed amount has been accepted, no funds have been transferred yet. They have informed me that upon their receipt of funds they would file a 1099C in which case I would have to report it as income. Is their anything I can do to prevent them from doing this. We are in the middle of negotiations and have till 20 November this year to finalize.

Answer
Likely not with a big company. The 1099c is obviously a tax document. They send those for their accounting and tax benefits.

With a smaller company, you could try to negotiate it. You/they could estimate the tax hit they would take by not submitting the 1099c and you factor that issue into the negotiations. In theory, you can do this with Wells Fargo but I think we both know the chances of a large company altering their accounting procedures are low. You can always make an offer to them.

You have no legal right to prevent or fight them from issuing it if they did take less than the contractual amount. You can contract the IRS - 1-800-829-1040 - to see how it would affect you and to see what options you have with them to invalidate it or dispute it if you want to go that route.

As an aside, you should also try and negotiate deleting of the bad credit information from your credit reports in cases like this.

Good luck. I wish I was more optimistic for you in this case but congrats on the settlement.

Regan
mbscompany@aim.com

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