I have been talking to a few of my different creditors, asking for settlements, and part of that settlement would be that it would show paid in full. However, each of the different creditors all state that they HAVE to report that the debt was settled and that a 1055C??(pretty sure this was the form they mentioned) would have to be sent out and be claimed on our taxes next year. Is this one of their negotiation tactics, or is there truth to this, that they can only report the settlement this way?