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Answering Reader Questions – 1099C and Credit Report Dispute Issues

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Today I’m answering the following two reader questions.

Amie

I need advice please about disputing a debt on my credit report. A third-party debt collector added a closed account to my credit report when that account was previously closed two years ago after a stipulated agreement was made between the original creditor and I and the case was dismissed without prejudice in a California court?

Is this legal of this collection agency to reopen a closed account without first taking me back to court and getting a new judgment?? How can I dispute this debt??

Rainee

My husband and I received separate 1099c debt cancellation forms, for the same amount of shared debt. We always file a joint return. If we submit both 1099c forms with our 1040, it will look like we received double the debt cancellation that we actually received. The creditor said they are required to issue separate forms for the full amount, as we are both responsible for the debt. I will list the actual amount of debt cancellation on the 1040, but if we are required to submit both of the 1099’s, it will appear that we entered only half the amount. How do I handle this?

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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.
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