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Posted in Auto Loans
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Question By
choocks

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Repossession of Vehicle
In 2009 I returned a Honda vehicle I was financing. I later received a 1099C from Honda as a result of my request for their Recovery Department to cease and desist. I did nothing with the 1099C because I had to figure out how to put food on my table and really didn't want to attend to all the debt. My credit report shows the $12,000 as a charge off, which is scheduled to remain on my credit report until February 2016. I thought about using my income tax refund to settle the debt, but I'm not sure if the 1099C means I'm no longer obligated to pay Honda. Is it worth me settling the debt with Honda since it will be off my report in about 2 years, or do I now owe the IRS due to the 1099C?

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You should consult a tax professional. I believe the law is still in effect that you owe taxes on that $12k. Better tend to the IRS first.

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