1099-c

If anyone can help me I would greatly appreciate it. About two weeks ago my husband and I received a notice from the IRS saying that a 1099 was filed on our 09 taxes we didn't report, and they wanted us to pay this big amount within 30 days or call and make payments or dispute it. The thing is, we never received the 1099-c to add to our taxes that year for one. Secondly, this is for a car that was a voluntarily repossed back in 1997! We knew back then we needed to pay the difference but we tried to work with the dealership that said they sold the car for $500 (7,000) car. We were advised to ask for proof that the car was sold legally for that amount and if the could then we would be responciable for the rest. They never could show us anything, no proof of sale. So we were at a standoff with the creditor. We have not heard from them since then. What I don't understand is how after like 12 years they can now decide to claim it to the IRS. Also the sale date on the form said 9/09 how is that? We don't know what to do and don't have the money to get help or just pay it. Any help would be so grateful
Thanks,
:confused: