Could the bank send me the 1099-C form?
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?
Answered By: E. Ray Critchett, Zaino & Humphrey, LPA
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
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Law Offices of James C. Bechler, A.P.C.
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
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 8/22/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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