How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TexLaw Your Own Question
TexLaw
TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
17219180
Type Your Legal Question Here...
TexLaw is online now
A new question is answered every 9 seconds

I went through debt consolidation and "graduated" according

This answer was rated:

I went through debt consolidation and "graduated" according to the company I went through. Recently, I applied for a loan to start building my credit back up but was rejected because I still had an unsettled debt on my credit report. The company that said I still owed them money had sent me a 1099C tax form several years ago. I and my debt consolidation company were under the impression that this meant they cancelled the debt and it was no longer owed. The credit card company said that is not the case, that they have to send the 1099 form out due to tax laws, but I still owe them the full debt and therefore, it will remain on my credit report as unpaid. Which is correct? Was the debt cancelled or do I still owe it? Thanks for your clarification on this!
Hi,

Thank you for your question. If the creditor settled the debt and sent you a 1099 for the shortfall, that debt is settled and can no longer be collected. So, int this case you do not still owe the money. The credit card company is not correct.

Do you have any of the written documentation from the creditor which settled the debt with you and sent you the 1099?

You should next contact the credit reporting agencies and send in a dispute on the debt still being listed on your credit history. Once this is removed, any future potential creditors will not be able to use it as a basis for an objection to lending you money.
Customer: replied 3 years ago.


Yes, I do have a copy of the 1099 form. Thank you for your help. I will start working with the credit reporting agencies.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am compensated by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Best Regards,
ZDN
TexLaw and 6 other Legal Specialists are ready to help you

Related Legal Questions