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Debt has been validated. Debt perhaps cancelled will 1099-c be on the way?


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Recently my medical debt was sold to a collection agency. I requested debt validation, and they produced the documents. I hear that because of recent legislation, debt buyers are required to report forgiven, or cancelled debt to the IRS as taxable income.  It is around 20,000 dollars. Of most likely out of statute debt. The said the debt was cancelled because of the SOL. However, they sent debt validation. Even after they stated the debt was cancelled on the phone.. I am considering filing bankrupty for around 100,000 dollars in medical bills. Now I am worried on this tax liability for forgiven debt might add up to around 7,000 dollars. Do these debt buyers and collection agencies often issue 1099 c's? How worried should I be.

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