company writing off bad debt

[bkbkbk]

I got a letter saying they are about to write off my account as bad debt unless I call to make payment arrangements. I have been avoiding any communication with creditors since I plan on filing bk soon.

Are they allowed to write off my debt as bad unilaterally without communication with me? If they can, does it matter since I would be filing bk anyway? (Or would there be IRS tax consequences that would be unavoidable?) Could I just get rid of any comments about debt write-offs from my credit report?

[keepmine]

They don't need the account holders permission to chargeoff an account. FDIC Reg 5000 requires them to chargeoff within 180 days of default.
If you get a 1099C, you need to file IRS form 982. That deals with bk and insolvency.

[bkbkbk]

Do I have to declare bankruptcy before they write off the debt to successfully use that form? Am I considered to have declared bk at the point in time when I initially submit the bk paperwork?

[keepmine]

Do I have to declare bankruptcy before they write off the debt to successfully use that form? Am I considered to have declared bk at the point in time when I initially submit the bk paperwork?

982 deals with insolvency as well. The date you file bk is the date that is reflected on your credit report.

[epiphany]

Your creditor could be bluffing.

B of A has been saying that if I don't make arrangements by such and such a date that they legally have to write it off as a bad date. They've been saying this for three months and keep moving the date.

ep