I had a credit card with USAA. I didn’t pay it and they cancelled the debt. It was for 5800 dollars. I was sent a form 1099-c and it drastically reduced my tax return.
Will a cancellation of debt have any sort of positive effect on my credit?
A cancellation of debt will appear as a bad mark on your credit report and that will account will be reported for seven years from the time it first went delinquent.
Be aware, that just because you received a 1099-C tax form about the debt, that has nothing to do with if it is still collectible. Expect collectors to call.
Please post your responses and follow-up messages to me on this in the comments section below.USAA Sent Me a 1099-C. Will This Help My Credit? - Andy by Steve Rhode