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Posts: 7
Registered: ‎03-04-2007
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Recieved 1099-C after bankruptcy!

I filed for Chp 7 and was discharged back in 6/2002. I now have a credit score right under 700 (after a lot of hard work!).
 
My question is this: I got a 1099-C from Capital One from a CC debt that was included in my bankruptcy ($953). On the form it has a box they are suppose to mark if the debt was included in a bankruptcy, they did not mark it. So it looks like it will be reported to the IRS as income for me. They are also showing the debt write-off as 12/31/2007, nearly 6 years later! 
 
I know I will need to contact Capital One to address this but does anyone have experience with a similar situation? 
 
Thanks.
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Posts: 28,098
Registered: ‎04-01-2007
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Re: Recieved 1099-C after bankruptcy!

Hi, myfico7, welcome to the forums! The Bankruptcy board doesn't get as much traffic as this one, but the readers there have a lot of specific knowledge, and since you've had 26 reads on this post on General Credit Issues without a reply, I'm moving it over to BK.

Hope you get some info there!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Posts: 964
Registered: ‎12-04-2007
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Re: Recieved 1099-C after bankruptcy!

well they are wrong and unfortunately it has already been sent on to the IRS, which fortunately already has a copy of your filing.  (they get all that stuff)  So, when you do your taxes this year, I would NOT include the debt.  But I would write a letter to the IRS and send a copy of your discharge paperwork and your creditor matrix showing this debtor listed and a copy of the 1099-C.  You might want to call the IRS prior and talk to someone and get the right address and department to send it to.  It will take some time (ours took about 3 months) but the IRS will investigate and you will be determined to be insolvent, and the IRS will ignore the 1099-C.  (This happened to us with HFC.  They filed one on us and we didn't even know and the IRS contacted us and said, what gives-- with some proof of filing etc and 3 months to investigate, voila, no problem) 
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Posts: 964
Registered: ‎12-04-2007
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Re: Recieved 1099-C after bankruptcy!

I just want to add that creditors are really getting skiddish now and are doing whatever they can to recoup their losses knowing that even bigger losses are comming down the pipes.  I think on this forum we will see more people having the amex's cl reduced and fewer people being approved.  The credit crunch is going to touch us all.  But we at least have 1 advantage in that we have already taken the steps to put ourselves in a much better financial situation now.  As a result, we might not be approved for as much credit as before the subprime meltdown but at least our BK's are behind us.  2008 will be a record year for filing. 
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