How Do You Collect Your Money If You Filed A 1099-C
First, you need to determine what circumstances led up to your filing a 1099-C form.
The Dash-1 regulations list 8 conditions that have happened to require the creditor to file this form. After 6 of these conditions the debt can no longer be collected as the law states that the form ends the transaction between debtor and creditor.
These 6 conditions are:
- Discharge of a bankruptcy
- The settlement for less than debt in full
- Statute of limitations has run
- Foreclosure
- Canceled debt in probate
- Canceled debt in receivership
The 2 other conditions are:
- Creditor ceases collection efforts on a claim
- When 36 months have elapse with no collection efforts