Legal Question in Tax Law in Pennsylvania

I received a 1099-c from a student loan company stating that they had canceled my debt about a month ago. Up until this point I had no idea that they were going to do this and I was in negotiation with them to start repayments (after they had canceled my debt, but I didn't know this at the time). Every person I spoke with on the phone kept asking me "have you settled your debt with us, we can't find your account?" It was clear to me that something wasn't right.

When I received the 1099-c I filed my return and also filed for insolvency. Today I got a letter from my student loan company apologizing for the error, but they didn't mean to send me the 1099 and that I should disregard it. I'm convinced that if I had not been calling them to try and set up payments after going into default that they would not have claimed that it was an error. My question is what are my rights? After I've filed my taxes can they still come after this money? (I have not filed bankruptcy)


Asked on 2/17/10, 12:26 pm

1 Answer from Attorneys
Solomon Weinstein Solomon Weinstein, Esquire

You should consult with an attorney the effect of sending the 1099c and your filing a tax return which I assume you listed the debt forginven as additional icome may be binding on the the company. However they may also argue a mutual mistake nullifying there action. I suggest you contact someone immediately to review the facts and correspondence.

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Answered on 2/22/10, 1:31 pm


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