 |
Can a creditor who has issued a 1099C for forgiven debt collect the remaining balance?In: Debt Collection |
[Edit] |
Answer
Tricky answer but you should be able to understand. If they did issue a 1099C for the debt, then they shouldn't then try to collect the balance. However, the debt maybe sold to a third party or third tiered debt organization who are generally hardcore and will ground and pound you on the phone. This shouldn't happen b\c now you will pay tax on the debt. However, like everything else in life there are always cracks and many of them. It will take 7 years from the time the last payment was made on the debt to be erased from your credit report. Don't worry about lawsuits either, although some states have a noticibly longer "statute of limitations" the only real way for them to sue you is if you are a property owner or have something to be made liquid. Hang in there.
First answer by Eco99. Last edit by Eco99. Contributor trust: 429 [recommend contributor]. Question popularity: 41 [recommend question]
Answers.com > Wiki Answers > Categories > Business and Finance > Personal Finance > Debt and Bankruptcy > Debt Collection > Can a creditor who has issued a 1099C for forgiven debt collect the remaining balance?
Our contributors said this page should be displayed for the questions below. (Where do these come from ) |
| If any of these are not a genuine rephrasing of the question, please help out and edit these alternates. |
