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[LoanChimp]

Only 48 months to pay back $0? They should have given the borrower at least 60 months to pay all that back...

[Fred93]

Cameron just sent me the following e-mail.

Prosper loan# 3339 which filed Chapter 13 bankruptcy has a payment plan setup which will pay unsecured creditors 0%. The payment plan started on February 1, 2008 and will last for 48 months. Please let me know if you have any further questions.

Astounding.  What the hell does that mean?  So prosper is holding the loan open for 48 months just in case that 0% actually arrives as scheduled? 

[112233]

orgers are such whiners. there's a payment plan setup. you guys are never happy.

[Xenon481]

I sent Cameron the following reply:

Due to the plan paying 0%, should this loan be charged off?  I want to write this loan off on my taxes and would like to have official Prosper documentation for that.

[Mtnchick]

Only 48 months to pay back $0? They should have given the borrower at least 60 months to pay all that back...

I agree - and it really should be an interest only loan for the first 12 months. I wish I was on that loan. I would have loved getting that 0% of it for over a year now - I could have bought some vapor with it.

What a bunch of garbage from Prosper. It's a charge off - plain and simple.

[ira01]

Cameron just sent me the following e-mail.

Prosper loan# 3339 which filed Chapter 13 bankruptcy has a payment plan setup which will pay unsecured creditors 0%. The payment plan started on February 1, 2008 and will last for 48 months. Please let me know if you have any further questions.

Astounding.  What the hell does that mean?  So prosper is holding the loan open for 48 months just in case that 0% actually arrives as scheduled? 

That is very odd.  Also very odd is that there would be a Chapter 13 Plan that pays nothing to unsecured creditors -- this person must owe an enormous amount to secured creditors to use up all of his payment capacity.

[Staneslav]

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[Mtnchick]

Cameron just sent me the following e-mail.

Prosper loan# 3339 which filed Chapter 13 bankruptcy has a payment plan setup which will pay unsecured creditors 0%. The payment plan started on February 1, 2008 and will last for 48 months. Please let me know if you have any further questions.

Astounding.  What the hell does that mean?  So prosper is holding the loan open for 48 months just in case that 0% actually arrives as scheduled?  

That is very odd.  Also very odd is that there would be a Chapter 13 Plan that pays nothing to unsecured creditors -- this person must owe an enormous amount to secured creditors to use up all of his payment capacity.

I'll have to double check but I'm pretty sure I haven't received any payments from Chapter 13 filers. IOW, I don't think this is specific to this person.

ETA - nope, no BK13 payments and I have one that was filed as far back as 2006

[Xenon481]

This particular BK13 of mine was filed in January of 2007 (per Prosper) but the payment plan didn't start until another 13 months later in February of 2008.  Is that normal?

[Xenon481]

Here's the latest:

Even though the payment plan calls for unsecured creditors to receive 0%, Prosper cannot move the loan into a charged-off status. Prosper is unable to give tax advice but as you may know, you do not have to wait for Prosper to charge off the loan before you claim it on your taxes.

I’m sorry, I forgot that Prosper doesn’t seem to be sending out 1099-B’s or any other official IRS documents for loans that are charged off, just for those which were sold to a JDB before Prosper stopped selling them.

[cubbiesnextyr]

Here's the latest:

Even though the payment plan calls for unsecured creditors to receive 0%, Prosper cannot move the loan into a charged-off status. Prosper is unable to give tax advice but as you may know, you do not have to wait for Prosper to charge off the loan before you claim it on your taxes.

I’m sorry, I forgot that Prosper doesn’t seem to be sending out 1099-B’s or any other official IRS documents for loans that are charged off, just for those which were sold to a JDB before Prosper stopped selling them.

Wow.  We can't charge it off even though you're not getting any money from it. 

Given this new information, I feel comfortable writing this off on your taxes.  I don't know how much you had on this one, but if it's significant, amending 2008 might be in order (unless you've got some ST gains you want to offset in 09 or something).

[Xenon481]

Here's the latest:

Even though the payment plan calls for unsecured creditors to receive 0%, Prosper cannot move the loan into a charged-off status. Prosper is unable to give tax advice but as you may know, you do not have to wait for Prosper to charge off the loan before you claim it on your taxes.

I’m sorry, I forgot that Prosper doesn’t seem to be sending out 1099-B’s or any other official IRS documents for loans that are charged off, just for those which were sold to a JDB before Prosper stopped selling them.

Wow.  We can't charge it off even though you're not getting any money from it. 

Given this new information, I feel comfortable writing this off on your taxes.  I don't know how much you had on this one, but if it's significant, amending 2008 might be in order (unless you've got some ST gains you want to offset in 09 or something).

According to my 2008 Lender Year-End Statement, I had $818.802 of principal remaining on this loan.

I don't expect my income this year to change much from last year other than an increase in salary and (not quite offsetting) an increase in HSA contributions.  So, whatever you suggest.

[HollowOak]

According to my 2008 Lender Year-End Statement, I had $818.802 of principal remaining on this loan.

OMG you lent small amounts overall and went all-out on this loan to the tune of $900? . What happened? You fell for the Sophtommy line of BS? Damn, I feel for you.

[Urbi_et_Orbi]

Is this a way from Prosper to show the loan as "Paid $0 as agreed" rather than "charged off?"

 

[Xenon481]

According to my 2008 Lender Year-End Statement, I had $818.802 of principal remaining on this loan.

OMG you lent small amounts overall and went all-out on this loan to the tune of $900? . What happened? You fell for the Sophtommy line of BS? Damn, I feel for you.

I fell for the Sophtommy stuff and had many conversations (over prosper pm) with the BKer.  I hadn't learned yet that people can lie through their teeth and make it convincing and not show any qualms about it.