Question: Dear Steve, Bought a new car had it for almost 2 years and missed just 2 payments as my wife was battling cancer and made arrangement to make those up however Wells Fargo just picked it up not giving me the chance to get it back and never sent me any paperwork even tho …
Just because you got a 1099-C form from forgiven debt is not a reason to immediately panic and think you will automatically owe a lot of taxes on the forgiven debt. In the debt world, a point of contention is the chronic misinformation about forgiven debt from debt settlement or a debt determined to be …
It seems more and more people are getting tax form 1099-C issued now for the forgiveness of old debt from as long as twenty years ago. That’s a problem for consumers. This old debt is sometimes called “zombie debt” because it appears to come back from the dead. The first thing you should do is …
Question: Dear Steve, My wife got 2 1099-C’s this year (1/30/2021). One had an identifiable date as 12/31/2017 and Identifiable Code G and the other had 12/31/2020 the date and a Code F. 2nd creditor (code F) had sold this account to 3rd party debt collector about two years before and we had no agreement …
Question: Dear Steve, I have an old creditor (Bank of America Credit Card) who sent me a 1099C, and they said that they decided not to pursue a financial claim on just over $3,400 of old credit card debt. The debt was charged off in 2012 but only closed out on the 1099C dated 12/15/20. …
Question: Dear Steve, In 2010 I returned a 2008 armada due to loss of income because spouse became unemployed. In 2018 I received a 1099 c for $12,000. IRS has sent a letter telling me that I might owe them $2600 for the cancellation of debt. Is there any way to get around this because …
Question: 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 …
Question: Dear Jim, I received a CP2000 concerning a bank cancellation of debt, this was due to insolvency. I did not know I had to file this on my 2018 tax return because I honestly do not remember receiving it. The total due is over $2000 in taxes after IRS computed calculated adjustments. I would …
Question: Dear Steve, Divorced for 5 years both parties remarried since. Ex-spouse kept house, changed the deed to him but did not remove my name from the mortgage in the house he and his current wife reside. Per decree, he is assumed responsible for that debt with no obligation on my behalf. Recently, after my …
Question: Dear Steve, My mother passed April of 2019 and Portfolio Recovery Associates LLC has sent her 3 1099-C forms with the Identifiable event date of 9/27/19 and Identifiable event code of G. The statute of limitations in South Carolina is 3 years and these debts are older than 10 years. I don’t believe the …