Can a credit card company simultaneously cancel your debt AND sell it?

[Anonymous]

I just noticed that I received a 1099-C "Cancellation of Debt" from the Original Creditor (meaning I need to pay taxes on it) on a debt upon which a Collection Agency is still trying to collect on.  Is that legal??  I'd think that a credit card company wouldn't be allowed to both write-off a debt AND sell it.  

And if illegal, what should I do?

TIA!

[guiness56]

Is the 1099-C for the entire amount of the debt or a portion of it?

No, once they issue a 1099-C they can no longer collect the debt. 

A write-off or charge off is not the same as forgiven debt.  Written off debt or charge off is just an accounting term and is used for their tax purposes.  You still owe the debt.

Forgiven debt is when they issue a 1099-C and you claim the amount as income for the year it was issued.  They cannot continue to try and collect on it. 

I am not sure once they sold the debt they have any legal means to issue a 1099-C.  Are you sure it was sold to the CA and not just assigned?