One loan went to three different collectors at the same time. It is paid off now but one of the three collectors (not the one the debt was paid to) filed a 1099 and now I have a tax liability issue. What can I do?

Locate the proof that it was paid, and send a copy of that along with a copy of the 1099 requesting that it be corrected.

Send it via certified mail, return receipt requested.

Was the loan paid off in full or was it settled for a lessor amount?

Was the loan paid off in full or was it settled for a lessor amount?

Nice catch ScottGem!

Didn't occur to me that you may have been granted a settlement on this.

If you were, the difference between what your balance was, and what they settled for, is now considered your income, and you must pay taxes on that income.

Yeap too late now, pay your taxas and start disputing the accounts with the credit reporting agencies, since there is no more money for the collectors in there is not likelly that they are going to put up a fight, they'll delete it if you push them a little.

Carl.-

One loan went to three different collectors at the same time. It is paid off now but one of the three collectors (not the one the debt was paid to) filed a 1099 and now I have a tax liability issue. What can I do?


Only the company that owned the debt can send you a 1099.

Anytime debt over $600 is forgiven, they are required to send that.