1099

[mopman64]

Ok, lets say you get a 1099 C from oh let's say GE Money Banks on a JCPENNEY credit card. 

 

Can a JDB still try to collect on this?

 

I am think no, that once the OC gives you the 1099 that it is done.  They get a deduction from the IRS on their taxes and you pay for getting the debt cleaned.

 

Am I right?

[willingtocope]

We've tossed this around several times...and the last I remember, the courts were still trying to sort it out.

 

At the moment, I'm pretty sure that the OC's 1009c is just an IRS requirement.  It doesn't cancel the debt, even if you do pay the taces on it.  If the Oc sells it, and you pay a JDB, then you can try to get your taxes back.

[WhoCares1000]

Right now, the issue is being wrestled with in the courts but the current mode of operation is that the 1099c does not cancel the debt. This is based on the initial court ruling that forced the issuance of the 1099c. The judge said that at the time, there was not legal opinion one way or the other whether a 1099c actually cancelled the debt or not so we wait for more rulings.

If you pay the taxes and then pay the debt within 3 years, you would file an amended return to get a refund for those taxes. After 3 years, you are out of luck.

[CordusAdmin]

@mopman64 - we recently added two articles about 1099-C's to our website.

http://www.creditinfocenter.com/debt/debt-settlement-1099-C.shtml   

http://www.creditinfocenter.com/debt/dealing-with-1099-C.shtml