1099C after Judgement

[Swatch]

Chase was awarded a judgement against me in January of 2011; and in the mail today I received a 1099C. This is the first I have heard from them since the judgement. My question is can they have a judgement and still file the 1099C? The reason code for the 1099C was letter "G"; should it have been "B" other judicial relief?

[willingtocope]

G = "Decision or policy to discontinue collection" which I think means they have decided the debt is uncollectable.  If so, that implies you're off the hook for paying the judgement and are now responsible for paying taxes on the "found" income.

[CreditVortex]

Getting a 1099C 'G' means that Chase will no longer try to collect, but they can still SELL the judgement and/or account (if it's within the SOL) to a JDB for collection, right?  Even if the amount is beyond the SOL the judgement stays in force until it expires: 10 - 20 years and/or is renewed and can be sold.  I'm not disagreeing but wondering, it is still murky. 

 

Another thing last year I also had a Chase 1099 'G' issued, I was notified and received it within the dealine for tax reporting.   Last year I called the IRS in Sept to see if any more 1099C's were outstanding and got a no.  I filed claiming insolvency but it can take up to 3 years to affect my 2013 taxes, I got both my small refunds from Fed/State, no problems noted. 

 

The creditors have until Feb 5 to mail your information (they don't have to notify you like Chase did) so I'm in a holding pattern until at least Feb 10-15 to file.

[willingtocope]

You're right...it is murky.  I think there have been court cases both ways.  Some have found that the 1099c extinguishes the debt...others not.