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COD97420

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Cancellation of Debt - do I still have to repay the creditors?
I became disabled in 2009 and in 2012 could no longer afford to make my credit card payments. I owed about $40,000 in credit card debt, with 4 different credit card companies. 3 of the 4 creditors have filed 1099-C forms, also known as Cancellation of Debt. I have had to pay income tax on the debt since it was written off. One of the cards has not filed the 1099-C and I don't know if they will. My question is, do I still owe my creditors if the debt has been written off? Also, could I be sued if I try to rebuild my credit? I am on a fixed income that cannot be garnished, but at some point would like to try fixing my credit. Any insight would be greatly appreciated. Thanks!

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The first question to ask is if the "statute of limitations" to be sued for these debts has expired in your state. Look that up or ask on here to learn the "sol" in your state. The website Bankrate has a list of the "statute of limitations" for each states on debt. The account will most likely remain on your credit reports until seven years has went by. The tax forms do not get you off the hook for the debt, they or the debt collector that purchased the accounts can still try to collect.

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