Collection agency hired a law firm to make my spouse pay 10 year old debt. They say they'll take the debt to the IRS if my spouse does not pay
I tried to settle it on behalf of my husband without his consent, gave them my credit card information to pay 30% of the settlement, they said they would send a form for me to sign approving this charge and they asked me to fax it back to them. I never signed it but they still charged me.
Now I can't pay this settlement anymore, my husband my loose his job, I will dispute this charge with my bank.
Did I worsen the situation? I never signed any document from this law firm.
I am not licensed in your state but I can offer some general advice.
I have not seen the form so I am no sure what it says, but I will take a guess. I would suspect that since the debt is 10 years old it is outside the statute of limitation so legally there is nothing that your creditor can do to compel you to pay. Except, if you reaffirm that you owe the debt then they can. I suspect this is what the form was all about. I think it is good that you did not sign it. I would not have. In fact I would not even bother with them.
As for the IRS issue. The tax code says that any time you get any sort ascension to wealth it is a taxable benefit. So if you have a debt forgiven you have improved your financial position and that is a taxable benefit. However, in your case you may be able to argue with the IRS that you were no longer legally liable for the debt thus there really was not ascension to wealth in your case.
I think you can just ignore them, but you really should get advice from a local lawyer who will know what to do before taking any course of action.
You should talk to a local lawyer who will be able to give you advice regarding your situation and your jurisdictions laws.
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