Jump to content

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


charles_doko
 Share

Recommended Posts

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.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.