A 1099c is issued to a debtor and to the IRS when a debt has been canceled (or forgiven). Once a debt has been canceled (or forgiven) and a 1099c issued to the debtor and IRS, no further collection attempts shall be made. If they are, then the debt has not been canceled (or forgiven) and no 1099c should have been issued to the debtor or to the IRS. note: website: www.helpwithmybank.gov (under consumer loan-general questions section) which states that unless the bank forgave or cancelled the debt, you are still obligated to repay the loan. Also the IRS states that continued collection, the existence of a lien relating to the debt, or the sale of a debt by the creditor are direct indicators that a debt has not been canceled. note: website: www.IRS.gov pubication 525 and instruction for 1099ac for further info.

The only entities that can issue 1099c are financial institutions (bank, trust company, building and loan or saving and loan associations), credit unions, federal govenment agencies, federal deposit ins. corp., resoulution trust corp, national credit union admin., any military dept., u.s. postal service, postal rate commission, a corp. that is a subsidiary of a financial institution, or an organization whose significant trade or business is the lending of money, such as a finance co., or credit card co. The average person or company not included in one of these entities can't provide a 1099c to a debtor or the IRS irregardless of monies owed to them by a debtor.

A 1099c can be issued on an unpaid debt for the entire balance that is due at the time of issuing the 1099c or for the canceled portion of the debt when a debt settlement has been agreed to. Example: $5000 owed, debt settled for $2000, debt canceled is $3000. This $3000 would then be on the 1099c. Since you didn't have to pay this $3000 to the creditor the IRS considers it to be income to you unless you qualify under a few exceptions like insolvency, a dismissal of the debt in a bankruptcy filing, or it was a gift on behalf of the creditor. See above IRS website for more info.

Any entity issuing a 1099c to the IRS must send a copy to the debtor. A 1099c doesn't show up on your credit report and you wouldn't know unless they sent you a copy of it as required by IRS laws. You can call the IRS to see if they have received one for you if you have concerns that they have. You can call the creditor and ask if they issued one. They must tell you and keep these records for 4 years from time of issuance according to IRS law. IRS law and banking laws govern this.

Also, a charge off and a write off are different from a 1099c. A charge off or write off (pretty much same thing) is done for creditors internal accounting procedures and do notrelease your obligation to pay a debt nor does it prohibit creditor from sending account to collections agency or selling account to debt buyer. Charge off's (write off's) does not require a creditor to issue a 1099c to debtor because they are not releasing you of your obligation to pay the debt nor are they given up their rights to collect on the debt but they are merely making an accounting adjustment on their books. Nor can a debtor demand a 1099c. Why? Because a creditor that issues a 1099c to debtor is thereby canceling the debt and not requiring any further payment on the debt and will no longer try to collect on the debt as of the date of the debt being canceled (which is shown on the 1099c).

If you are contacted for payment on a debt that has been been previously canceled because you have received a 1099c reflecting such you should provide copy of 1099c for proof and assert you knowledge of the law and refuse to pay anything further and demand no further collections be made. All of this should be in writing and sent certified mail to company trying to collect. Keep copies of all for proof. If you are contacted again call a consumer lawyer in your area. They are just waiting for a good lawsuit to file and work on a contingency basis so you will not need money to hire them.

Also, if you have been through bankruptcy or in process of, all your debts should be listed and eventually dismissed by bk court. When debts are dismissed through bk you no longer owe them and they are not taxable to you. Send any further collectors this information in writing with bk case number and 1st page of bk doc and demand no further attempts to collect be made. Put in writing and keep copies and certified mail for proof. If attempt is made again call consumer lawyer. If you have any problem with IRS and 1099c after bankruptcy send IRS letter and copy of 1st page of bk doc. If lawyer handled your bk then they should handle any problems that arise after.

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