Legal Question in Credit and Debt Law in California

Re: 1099c?

That form is a cancellation of debt. The law firm may have violated the Federal Fair Debt Collection Act if no such valid debt existed. This is a methold to extort money from you. If you have any writings from the law firm, we would like to review it. If you have any other questions, please contact me.

Re: 1099c?

A 1099C is a report from the creditor to you and the IRS that they have "forgiven" a debt that you owed them. When you receive that 1099C, you may simply have to include in your taxable income the amount of debt they have forgiven. The Revenue Code allows them to do this once they have forgiven a valid debt. The question is, and I indicated that you "may" have to include this in your taxable income, can a lender "forgive" a debt that they can no longer legally collect? This is a question you will have to ask either a tax attorney, or your CPA. We do not provide any tax advice.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.