Legal Question in Credit and Debt Law in California

Re: uncollectable

Thanks for your inquiry. The fact that a debt is 5 years old doesn't make it automatically uncollectable. If there was a written agreement, then the statute of limitations is four years from the date of the breach of the agreement, which may be less than five years ago. Also, a separate act allows creditors to place information regarding negative activity on your credit report for 7 years from the date of the activity.

If your debt is truly legally uncollectible, you don't need to do anything unless they try to sue you, and then you must bring up the statute of limitations defense in your answer to the summons and complaint.

Normally, in order to take a deduction for a charge-off, a company has to agree not to attempt to collect on a debt in the future, and may treat the write-off as income to you, and send you a 1099 form for the benefits received by you.

Re: uncollectable

It is very unlikely that the credit company will be so vindictive as to follow up on the loss of pqayment with a report to the IRS. It is even questionable that the IRS would pay any attention to such a report.

Re: uncollectable

You can never predict what a person can do whether it be right or wrong. You may as have a lawsuit (claim) against the collection agency. Please contact me if you want to proceed in this manner.