Paid off consolidated debt, now have to pay for 1099?

Tax issues are definately your responsiblity.

Make sure you get paid or settled in full letters from every creditor.

If your accounts are all settled, there's no reason to continue making payments to this firm for a potential tax liability.

Simply discontinue your payments, and worry about the taxes in April. If you're concerned about what you may have to pay in taxes, you can access the IRS website, and download IRS Form 982, which should give you some idea of how you look on paper, and what your tax liability may be. Remember, not everyone ends up paying taxes as a result of debt settlement; it depends on your solvency (or insolvency).

Also, has the debt settlement company mailed you all of the debt settlement letters from your creditors, so that you have proof of these settlements for your records? If not, you'll want to contact them and obtain all written confirmations for each settlement.

Good luck!

i would call each of the creditors and inquire about the settlement letters.. some of the settlement companies do not do thing correctly.. they are all about money

Yes, I agree, that not all debt settlement companies do things correctly, but OP should hold the company accountable and responsible for providing written confirmation of these settlements.

The reason one hires a settlement company is to save time, and in some cases money, as well as the fact that they don't have to deal with creditors and collection agencies. If the debt settlement company was paid, they certainly owe this consumer all relevant documentation. We forward all hard copies of settlement docs to our clients, and keep a digitized copy for our records; I'm sure this company has similar policies in place.