If debt settlement is reached with credit card companies, when will they generally complete the 1099C? I have received two different answers. The first is once the settlement has been reached. The second is when the account is actually closed. We have two accounts which we are considering settling. Cannot afford the taxes ramifications on "both" in the same year. Should we settle one in 2010 and pay on that year’s tax return and settle the other in 2011 to spread out the IRS payments?
The debt would be in excess of 0.

Technorati Tags: 1099c, credit card companies, Debt Settlement, irs payments, ramifications, tax return

I just settled a debt with a collection agency, instead of 1900 i paid 850. I have a settlement letter stating i am settling in full for this amount and it will show up on my credit report as such. Will this letter protect me from other collection agencies, if they sell off the remaining balance?

Also, they did not mention a 1099c. By law, i should be reporting this forgiven debt. when it comes time to do my taxes next year, if i dont recieve a 1099c do i have to report it? should i report it anyway?

Any help would be much appreciated.
I called the CA and asked about the remaining debt, if i had to pay taxes. She didnt know the answer so she asked her supervisor. She said I dont have to pay taxes, she said there considering it like just paying a credit card and not an account that’s in collections. Does that make sense, I dont get it.

Also, i should be recieving a letter saying my payment was recieved, that should protect me even more from them selling this off, I hope. To me it would be stupid giving me these letters and then selling the remaing balance, because i have proof but who knows.

Technorati Tags: 1099c, collection agencies, collections, credit card, credit report, proof, recieved, supervisor

I understand that if settling — I will receive a 1099c from the IRS to pay 40% of the difference if I settle but is there any other advantage in respect to my credit reporting if I pay in full instead? Will it come off my report sooner or do Lenders look more favorably on this? Does it make a difference at all?

Technorati Tags: 1099c, irs, lenders

I have debt that is about 4 yrs old that I would like to settle or pay off. Some are/were with collection agencies (not sure now where they are because of the age of the debt). The debts are unsecured (electric, cable, etc.) and some are secured. I also had a foreclosure of the same age. While I know that the foreclosure will still hurt my credit score until 7 yrs, I would like to start the process of healing my credit score so that when the 7 yrs for the foreclosure to drop off is up, my credit will be in a better position. My credit score currently is around 574.

I have heard that settling for less is good and paying the full amount is good. I would like to know what is going to help more in the long run. I also heard that getting a secured credit card can help. Is this true? What would my best route be in correcting the wrongs?
Also, where should this process start? Should I ask the collections to validate the debt first or should I deal directly with the main company first?
The electric bills and such, even the total debt (minus the foreclosure) does not amount to much. The total amount is under 00.00.
My foreclosure was over 3 years ago.
I am not sure about the 1099C. I assume that I did receive it but I am not sure if I did anything with it on my taxes (ex boyfriend did my taxes for me then). I am not sure how the foreclosure relates to paying off old electric bills though. I do understand that it will still be on my credit but other than that, I was trying to pay the other old debt off….
Does paying off the old debt lead to more problems with the foreclosure?

Technorati Tags: 1099c, 3 years, best route, collection agencies, collections, credit score, debts, electric bills, electric cable, foreclosure, secured credit card

I settled a debt in July of 2007 but didn’t receive a 1099C until today (02/02/2009) for tax year 2008. Shouldn’t the 1099C have been filed for tax year 2007 since the settlement occurred in July of 2007? What should I do?

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I owe about 22,500 in debt, and got a letter to settle for 15,700. It is extremely tempting but what are the negatives of having to file a 1099C if I continue to have good, regular income? I had extreme debt & bad luck paying it off, then got an awesome job and sold some stock so I am in the clear. Should I take that 7K discount or will it bite me bigger than that in the end? What I mean is will it bite me by either having that on my record, or paying more taxes? Thanks for the replies – I am trying to research online also.
Do 1099C’s go on your credit report as bad debt? I am so naive…! Or showing that you have a 1099c and settled is a plus? Should I get bakc in the game for the long haul and pay that extra 7K? (worth not tarnishing my credit further?)

Technorati Tags: 1099c, amp, bad debt, bad luck, credit report, game, job, long haul, stock