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Thread: Re: Can a Creditor Continue to File a Failure to Pay After Filing a 1099c

  1. #1
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    Re: Can a Creditor Continue to File a Failure to Pay After Filing a 1099c

    My question involves personal finance in the State of: I just received a letter from the irs stating that I owe taxes from 2012 because there was income that I did not report. I saw that this creditor reported a 1099-c to the irs on 12-30-12. I never received this and I never spoke with them to an agreement on this. neither less this is a good thing right? well if that is the case they have been reporting failure to pay every month currently to my credit report. What do I do to rectify this? This was something my ex-husband did while we were married. Apparently he went online applied and was approved for the loan with my information only without my knowledge. We shared a bank account and being young and na´ve I never checked the account. Now I am the only one at fault apparently.

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  3. #2
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    Re: Re: Can a Creditor Continue to File a Failure to Pay After Filing a 1099c

    Unfortunately, the creditor is correct in continuing the failure to pay and was also correct in filing the 1099.

    You'll have to deal with both.

    Check the IRS website on the possibility of the taxes being forgiven.

    Did you not address this debt in your divorce decree?


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    Re: Re: Can a Creditor Continue to File a Failure to Pay After Filing a 1099c

    It was not apart of my divorce decree because he didn't want to sign the papers and moved out of state so I had to go through the newspapers just to get divorced. I was told that by filing a 1099c with the irs it was considered a cancellation of debt. is this wrong. especially when no one has actively tried to collect. I called them in 2011 to let them know the situation and they said the account was closed but they never sent the letter I asked for saying so. but yet they are still reporting a failure to pay that is current.


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    Re: Re: Can a Creditor Continue to File a Failure to Pay After Filing a 1099c

    The debt was cancelled because you failed to pay.

    The negative entry on the credit report continues to be valid.

    Theoretically, you can still pay the debt and the entry would be upgraded to paid.

    You might still have to pay the taxes for the year of the 1099 and then get a credit for the subsequent year. I don't know if that's right. You'll have to talk to a tax pro.

    Another thing. You might still be able to sue your ex for indemnification if you pay the debt.

    Whether you'd ever collect is anybody's guess.


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