What is 1099C?

1099C is a "cancellation of debt" form to be filed with the IRS. You need to check out that the debt that has been cancelled by your creditor. They usually write it off after it has reached the charged off state. They will stop all collection efforts and send a copy to the IRS.

When can you expect a 1099-C form from your creditor?

• your creditor decided the debt is uncollectible (possibly because you are judgment proof), AND
  
• your debt is $600 or more, AND
  
• your creditor "charged off" the debt as a loss for tax purposes.
  

what does judgement proof mean? does this mess your credit up more? it is for 511 and 244 intrest. should i just settle it- would this be better in the long run?

When a person is declared "judgment proof", the creditors cannot seize his/her assets while recovering the debts he or she has. If you have no means to pay it, filing the 1099-C form is a good move. You get some reduction in the total amount of your debt, you have to show it to the IRS when filing your taxes.

u helped so much i was thinking they would put a judgement on me, or garnish my check

A 1099C is usually filed when a creditor or collector settles an account in excess of $600 less than the total due (for example a $2000 debt is settled for $1200). The consumer must then report the "forgiven" amount as income and pay the applicable federal income tax on that amount (in the previous example the consumer would pay tax on the $800 which was forgiven and not actually paid to the collector or creditor).

Once a collector files a 1099 on a debt it is no longer collectible. the consumer should retain copies of the 1099 in a safe accessible place so that if the debt is included in the future junk debt portfolio, they have ready access to proof they debt is no longer legal, and all collection activities must cease.

a 1099C is not the same a being judgment proof.

so if i file a 1099-c it will help me in hte long run?

You don't file a 1099-C. You are issued one for any forgiven debt. You are responsible for taxes for any amount over $600 as it becomes income.

Can there be a situation where an OC issues you a 1099-c when they charge off a debt, but where they also sell your debt to a CA with whom you settle? So you get taxed on the full charge-off, even though you end up settling for something less than that? Just curious, as it seems like you should only get a 1099-c once the debt is uncollectible because of SOL or something, otherwise it seems there could be some double payment going on.

if someone was harrased into paying the debt ended up in 1099c can i go after them because it was harrasment ,neverspoke with me except for letters, already charged off- person paying did not ask me - trying to be nice -backfired -go after them legaaly

Define harrassment and do you have documentation? Charge off doesn't mean it is not still owed. You might have grounds for FDCPA violations but the 1099-C is required to be issued. There is no grey area

what? or do i have to pay anything on a cancellation of debt

i have a 1099c after credit card settled ...what do I do with it? where on my 1040 do I put these amounts ?

It sould be included in income. Are you preparing your return manually or are you using a tax program? It should ask for any 1099's when you are entering your info

Show you are insolvent Form 982 and have a worksheet and you are forgiven the 1099c for the amount you are insolvent. If you are not insolvent then you claim it as income. Figure 30%

I received a 1099-C form this year on a debt that charged off several years ago--original account was opend in 1996. The charge off no longer appears on my credt reports so the best I can tell the charge off happend at least 6-7 years ago. Can they just now send the 1099C or should they have done it sooner?

I was in an accident which my car was totaled. The bank sent a 1099c for becuse they sad the debt was forgiven. When looking through my car paper work I found the paper which was an addendum to retail instalment contract saying I was no respnsable for the GaP amount. How can I be assesed to pay takes on it when I wasnt responsable for it. The amount was for ove6 $600

I had a debt cancelled by a creditor 2 1/2 years ago, it still shows on my credit report as a late monthly payment. how long will or can they they report a late payment on a cancelled debt?

can you be forgiven for this if it a second home

Declared Chapter 7 in 03. Received 1099C (2009). This was from a car loan that was discharged through the Bankruptcy. Do I still add this to income? Info is all about Chapter 11's.

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filed bankruptcy in 2003. cra is saying they are going to file 1099c for debt i filed on w mobile home in tx. can they do this

what happens if you don't have the money to pay the IRS on a 1099C? Property goes into short sale due to loss of job. If you could not afford to keep you home, how are you expected to pay the so called "forgiveness" to the IRS on a 1099c if that loss is reported as income.