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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?


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.

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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.

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