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

“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.

Sincerly,


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode
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