Credit Card Debt Charge-off and 1099-C
(State College PA)
if credit card debt is charged off, will a 1099-c be issued for the amount of the charge off and if so,can a collections agency attempt to collect such debt?
Reply from DebtCollectionAnswers.com:
It may be. But exactly when that will happen depends on when/how they attempt to collect the debt from you. IRS regulations require the 1099-C in several circumstances, including if they truly forgive the debt and when there is no substantial collection activity for 36 months.
And yes, in most circumstances the debt can be turned over to a collection agency which will try to collect.
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