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USAA Sent Me a 1099-C. Will This Help My Credit? – Andy

Written by Steve Rhode

“Dear Steve,

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?

Andy”

1099C

Dear Andy,

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.

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About the author

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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