I Just Got a 1099-C Form for a Debt From 16 Years Ago


Dear Steve,

I received a 1099-C for charge off debt in 2004. I filed my taxes already. This debt occurred when I was married. Divorced for more than 6 years. The single parent no child support. I support my household alone.

Can I claim insolvent on this based on my the household falls on me alone for bills?

Have very few assets. My rent is $800 a month and car payment etc. Not sure how to proceed. Already filed taxes February 1 and return was received and no money left



Dear Melissa,

If this had been a real 1099-C form for forgiven debt and you received it so many years later, then you just need to follow this process.

Thankfully you sent me a picture of what you are calling a 1099-C form.

Taylor and Associates BS 1099-C

In my opinion, the letter you received is extremely misleading and deceptive.

It is NOT a 1099-C. It is actually an offer for you to pay a debt you may not legally owe anymore since it might be expired under the Statute of Limitations and would not be reported on your credit report after this much time.

It appears that Taylor and Associates purchased the old bad debt and is now trying to collect on it using creative efforts.

There is so much I would do before ever falling for this trick. For example, even if you wanted to pay this old debt over which it is unlikely you can be sued for, I would question if Taylor and Associates can even verify you actually owe the debt since so much time has passed and who knows how many hands this has passed through.

You should absolutely contact a consumer attorney that helps people with debt collection issues. You can find one that is licensed to practice in your state on this list.

What you should absolutely avoid doing is contacting Taylor and Associates or have anyone else, other than your attorney, talk to them about this debt.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
See also  I Got a 1099-C For Debt I Didn't File Bankruptcy On

Saying the wrong thing could restart the Statute of Limitations clock and you do not want that to happen.

In reality, the 1099-C would have typically been issued by the original creditor when they charged off the debt way back when. Or at the very least when they sold the debt as a bad debt.

So my advice is to not panic, don’t rush to do anything until you talk to an attorney. This letter is an effort to trip you up into paying money you no longer legally owe.

I think it is very important to speak with an attorney licensed in your state because the issues that can trip you up here are technical legal things. Only an attorney can give you legal advice.

But all of that being said, if you feel some burning desire to make a payment or accept this offer, that’s up to you. The only reason to do that would be if you felt some emotional reason to do that.

Making a settlement or payment plan at this time might just trigger an actual 1099-C and I’m not sure that’s an issue you want to deal with right now. You call though.

Damon Day - Pro Debt Coach

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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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