1099-c forgiven debt now considered income

by maureen
(staten island)

my husband passed 02/12/12 with no assets other than an underwater home, in his name only, which is now in forclosure. i just received on 01/24/13, a 1099-c executed 12/23/12 from chase for a credit card(they also have the mortgage, ny state), so this now appears as income. can they 1099-c a dead person??

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Jul 18, 2017
1099c after death
by: Anonymous

You can provide the IRS a death Certificate they may still require you to complete am insolvency sheet and file form 982. Technically when someone dies you have to file a file return and this cancelled debt should be included. There are many different situations so each has to be handled differently but those are the most likely resolutions

Oct 26, 2015
by: Anonymous

Mom paying back overpayment from her ssa but dies with a hefty balance what is the executor right not be held liable?

Reply from DebtCollectionAnswers.com

As an executor you shouldn't be responsible for her debts that you aren't party to, but you presumably are one of the beneficiaries of her estate. Is that correct? If so SSA may try to collect from the estate, which could reduce your inheritance. This case elaborates on that situation: https://www.socialsecurity.gov/OP_Home/rulings/oasi/31/SSR87-08-oasi-31.html

Aug 31, 2015
Debt collectors for deceased parent who died w/ debts
by: Matt

My father passed earlier this year in Pennsylvania. He was divorced, and I'm one of two children. I'm listed as PNOK on his death certificate. He had no will. His income was fixed (social security/minimal pension). He was renting an apartment, since closed out. Other than a few household goods worthy only of Goodwill donation, he had no assets to speak of.

I took some personal effects, mementos, photos, papers.

No jewelry or valuable personal property, no car, no real estate, no property, no cash or other investments/assets. The only asset he really had was a checking account with a few hundred dollars in it-to the best of our knowledge.

The SSA and his pension have been alerted of his death. I'm sending a death certificate to his bank regarding his checking account.

So, I don't see much point in asking a probate court to appoint an administrator, since his family will not benefit in any way.

My question, do I have any obligations to my father's creditors on his debts (substantial)?

Reply from DebtCollectionAnswers.com:

You should not be responsible for his debts unless you were a cosigner and it doesn't sound like you were. Our condolences for your loss.

Jan 27, 2013
1099-c forgiven debt now considered income
by: Debtcollectionanswers.com


I am not qualified to answer your question because I am not an estate planning attorney nor am I a CPA or tax attorney. I recommend therefore that you do or more of the following so you are clear about what you need to do with the 1099-c: call the IRS or talk with a tax CPA.

Good luck!

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