Could the bank send me the 1099-C form? 2 Answers as of September 07, 2010

My car was repossessed 6 years ago and the bank has submitted a 1099-C form. I do not think that they can do this. Should the repossession be taken off of my credit report if that money is now being taxed?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Or for Immediate Assistance call (888) 428-7281

Free Case Evaluation by a Local Lawyer: Click here
E. Ray Critchett, Zaino & Humphrey, LPA
E. Ray Critchett, Zaino & Humphrey, LPA | Ray Critchett
If there was cancellation of debt, it would be taxable as ordinary income. I do not believe the taxation of the debt forgiven would not have any relation to your credit report.

You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. Thank you.
Answer Applies to: Ohio
Replied: 9/7/2010
Law Offices of James C. Bechler, A.P.C.
Law Offices of James C. Bechler, A.P.C. | James Bechler
When the bank repossessed your car, it sold it to pay off your loan. Whatever the shortfall, you were 1099 for the debt forgiveness. You may or may not owe taxes on this amount, as it depends on your solvency at the time the car was repossessed. The Credit report has nothing to do with the 1099, and will remain a derogatory until you clean it up, or it falls off in 7 years.
Answer Applies to: California
Replied: 8/22/2010
Click to View More Answers:
1Free Legal Questions