A 1099-C was Issued to Me But I Was Not a Party to the Loan


Dear Steve,

Is it lawful for a creditor to issue a 1099-c to a non-debtor spouse?

The debt was incurred by the debtor spouse during marriage, but the non-debtor spouse was not a party to the debt and did not guarantee the debt.

Irrespective of whether the community estate may be liable for the debt, is it appropriate and lawful for the creditor to issue a 1099-c to the non-debtor spouse?

– Wife had a debt during the marriage in only her name.
– Debt went unpaid.
– Creditor issued 1099-c to me.

Thank you!!



Dear George,

Now that’s an interesting situation.

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My first reaction is if you might have been a party to the debt without your knowledge. It would not be the first time a spouse has listed the other in order to get a loan.

A creditor must issue 1099-C statements to all parties that are jointly responsible for a loan that is forgiven.

I’d reach out to the creditor that issued the 1099-C and ask them for more information.

The creditor would not have just issued a 1099-C to a non-participating spouse so some information is upstream that triggered this to happen.

As far as if it is lawful to get the 1099-C, well, I’m not sure it is illegal to make an administrative error. But it sure would not be legal to be the victim of identity theft and actually a party to the loan without your knowledge.

Contact the issuing creditor and then come back here and post an update in the comments section and we can take it from there.

Damon Day - Pro Debt Coach

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