How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598

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 … Read more

I Have Old Debt From 10 Years Ago That’s Vanished. Do I Need to Worry About It? – Carrie

“Dear Steve, I had accumulated about $20,000 of debt 10 years ago. I never addressed any of it, and had one judgement for $2500 come through the local courts. I’ve never been able to pay any of this debt. About 3 years ago I looked into my credit report to see what I could do … Read more

Zombie Debt 1099 Style. And You Thought Your Old Debt Was Dead. LOL.

THE KING OF ZOMBIE DEBT: THE 1099-C. WHAT TO DO WHEN COLLECTION CONTINUES AFTER RECEIVING A 1099-C By Gregory M. Fitzgerald, Esq. Most folks who get a 1099-C accept that it is a good news/bad news thing. The bad news is you must include the 1099-C as income on your taxes. The good news is … Read more

There are Good Debt Collectors and Then There Are Debt Collectors That Lie, Cheat, Steal, and Threaten

A reader brought the following article to my attention, America’s Abusive Debt Collectors on the DailyBeast.com. It is an interesting look into some of the bad collection outfits by Gary Rivlin. Gary includes first-person accounts of some of the actions they were asked or required to do to keep their jobs as collectors. These bad … Read more

How to stop a junk debt buying collection company from re-aging an old debt?

Do collections agencies have access to Credit Bureaus? It seems like every year we pull our free credit reports, within days we start to get calls from strange collection agencies trying to collect on debts we had 10+ years ago. Every once in awhile I get a call on an old VISA card I had … Read more

A Paper Worth Reading: Robo-Signing and Lack of Proof in Debt Buyer Cases

Here is a great research paper worth reading. It certainly helps to focus the robo-signing issues we’ve all heard about with mortgages to a problem that debt relief providers will need to deal with. For a while we’ve talked about the issue of a debt relief provider that either sets up a payment plan or … Read more

They Say I Owe Magnolia Hospital a Debt From Twelve Years Ago. – Shelley

Shelley “Dear Steve, I received a letter today (6/3/2009) supposedly from an attorney in Mississippi. I live in Tennessee. The letter says that I owe Magnolia Hospital $642.59 from 1/1997. It says that the amount is plus interest. This was 12 1/2 years ago. I was certain that this bill was paid following the birth … Read more

I’m Being Asked to Pay On a Debt I Paid But Can’t Find the Proof. – Stacey

“Dear Steve, I was hospitalized in 2004 and paid out-of-pocket the balance that my insurance did not cover. I payed off and settled all debts at the beginning of 2005 with the hospital. They told me that I was clear and owed nothing else. This was almost 5 yrs ago and have not heard or … Read more