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My husband received one 1099c from chase. it say debt discharged ( H- expiration of non-payment testing period) He win but it was dismissed without prejudice, it was a jdb not  chase, but my husband admit he owes chase but did not have the money to pay.

 

He report it on this year taxes using the form 982 Part 1 line1b Discharged of Indebtedness and on Line 2 $3,000 and Part II line 10a $3,000 that all we did we did not provide any other paper. like the Insolvency Worksheet, because it say keep for your records. Did you think we need to filed and if we do did you think we did it correct?

 

the amount was more but they said that if he pays they reduced to $3,000 my husband did not agree but it was dismissed because they requested and did not proceed to trial, they were more than 150 miles away from court, and they were DJB. 

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You should NOT be receiving a 1099C after about Feb. 29th if I recall of each year. I would at least question any sent out after April 15th as being illegal. Ask the IRS the proper procedure on them being issued.

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It was from the OC, looks like they forgave the debt then.  Now if they sell the debt, I would think you have a strong case in court, as it should be considered a done deal.  keep a copy of that 1099c, it is your forgiveness paper.  I doubt they will refile on you since they issued you a 1099c. 

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A 1099-C is still debated as being forgiven debt. There are people that have still been sued after a 1099-C was issued. Just do a search on both, this forum and the internet.

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