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1099

Submitted by on Wed, 11/24/2010 - 01:33
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I have accepted an debt settlement offer from my 2nd mortgage holder. They said that my account is in charge off status. They are requiring me to pay them 10% of my debt. I am able to do this but I want to know if they can try to collect any more payments from me after I pay them what we settled on. I also want to know how form 1099 works and how much would I end up paying in taxes. Thank you.


You should receive a 1099C for anything over $600 being forgiven and you will have to claim that amount as income. In order to make sure you aren't charged again in the future, have your settlement put in writing and have the company send you a paid in full or settled in full letter. If you receive a 1099C, hang on to that as they cannot come after you for more after they've issued the 1099C.


Submitted by OhioGal1 on Wed, 11/24/2010 - 08:00

OhioGal1

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