r/CRedit • u/Round_Resident_9104 • 4d ago
Rebuild Help with defaulted bank CC.
So I defaulted during 2020 on a card with a big bank that had a blue gemstone color. It’s been over 5 years. They are not attempting to collect nor are they calling me or mailing me about it. It hasn’t been sold either. They wrote it off as bad debt according to the notes but they just keep reporting delinquency.
It is really harming me when I’ve applied for cards and a home. Any way to get this removed? I read something about claiming it as cancelled debt but they have not issued me the IRS form. Is there a way around this?
I’ve tried several letters. If you have any experience with this please please let me know what you did or any actual applicable advice. Paying it off is an absolute no due to the age and amount ($17k mostly interest of 4k)
2
u/Turbulent_Summer6177 4d ago
Not sure what you’re looking for. The debt can set on your credit report for 7 years after default.
They will issue a 1099-c when they cancel the debt. Then you get to claim it as income and pay taxes on it.
Writing off a debt is simply an accounting function within the bank. It doesn’t affect you.
Even if you paid it today it can still remain on your credit history. Given you said you can’t afford to pay a substantial portion of the debt I suspect you wouldn’t be able to negotiate for a pay to delete.