Legal Question in Credit and Debt Law in California

If I have a loan that was forgiven and reported to the IRS with a Cancellation of Debt. I thought I no longer owed the loan, am I still required to pay back the loan? I have a judgement against me with a collection agency for a forgiven debt that is now attaching my wages. What can I do?


Asked on 1/10/11, 10:15 am

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

The lender wrote off the loan for tax purposes and then sold it to a collection agency. Writing off the loan does not mean that you don't have to pay it. In fact, the judgment against means that you ignored or lost a lawsuit and a court has ruled that you do in fact owe the money. You should see a local bankruptcy attorney about your options.

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Answered on 1/15/11, 10:48 am


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