Latest Posts
Home > Ask The Get Out of Debt Experts > Can a Debt Collector Send a 1099-C on a Debt That Charged Off 5 Years Ago? – Regina

Can a Debt Collector Send a 1099-C on a Debt That Charged Off 5 Years Ago? – Regina

“Dear Steve,

I defaulted on a credit card account in 2005. I was in a really bad situation. I didn’t even have enough money to eat, let alone pay this bill. I got calls about it for about a year. Then nothing. Occasionally I would get a letter or phone call, but that was it.

Today I got a call from a debt collector regarding that debt. My situation has drastically improved, and by pulling my credit report, he discovered that. I don’t have the resources to pay all the collection charges plus the original amount owed–$650.00 has gone up to over $3,000. He has threatened to call my student loan company and tell them I have a credit card and that my deferment should be cancelled and send me a 1099-C for the $3,000 + dollars he wants.

Can a debt collector send a 1099-C for a debt that was charged off by the original creditor in 2007 and add collection and late charges to it?

Regina”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Regina,

Can a debt collector send you a 1099-C on an old charged off debt. Technically, sure. But that doesn’t make it valid. The IRS has a policy to dispute a 1099-C that is issued late. See How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598.

But there is more in play here. Depending on the state you live in the statute of limitations may have already expired and you may not be able to be sued for the old debt. You can find a chart of the statutes of limitations in all 50 states here.

But the part that has me the most confused is the statement about the student loan. Is this old debt for student loan debt?

If you can give me a few more details I think we can get to the bottom of this. Until we do, do not admit a thing with the collector. In fact, tell the collector you would like documentation to verify the debt. See Debt Validation Finally Defined. What You Should Ask a Collector or Creditor for to Validate a Debt.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

Can a Debt Collector Send a 1099 C on a Debt That Charged Off 5 Years Ago?   Regina
Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Can a Debt Collector Send a 1099-C on a Debt That Charged Off 5 Years Ago? - Regina by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.