1099-c
Date: Tue, 01/26/2010 - 06:00
Quote:Originally Posted by AnonymousIf a credit card company sen
Quote:
Originally Posted by Anonymous If a credit card company sends you a 1099-C does that mean the debt is cancelled and nobody else can collect on it? When I claim this on my taxes I'm trying to figure out if that will be the end of it? |
The Creditor issues the 1099-c to report the debt to the IRS as an income for the debtor when he forgives it. Issuance of this form also means an end to all collection activities to recover the debt.
Since the debt would be regarded as your income now, you'd have to pay income tax on it.
SC: You are partially right. If a 1099C is not for the full amo
SC:
You are partially right. If a 1099C is not for the full amount of the debt then collection action can continue for the difference. It is always important to make sure that any 1099C that you are going to receive has the full amount of the debt.
The creditor is BOA. It wasnt for the full amount of the debt. I
The creditor is BOA. It wasnt for the full amount of the debt. It was for 12K and the original debt was for 15K. I called BOA today and was told the debt was wiped out and that I would'nt get any more collection calls. Thing is I had settled all 5 of the other cards I had and this was the last one left. I was getting ready to contact them and make an offer when I got the 1099c. I had not made a payment since 6/06 nor heard from them since 2/07. I'm guessing this is'nt over. But she said it was. I asked about a settlement letter and she said that the 1099c was all I would get. time will tell