I have a feeling I already know the answer, but I am wondering if anyone has experience with this.
I had a HELOC many years ago that ended up as a CO. The balance was not outrageous, however, I can not even settle on the debt with cash, as it was already forgiven. I received a 1099 to file with the IRS. I am not worried about the tax filing part, I had that handled. My question is can I possibly get the account changed to at least "settled" with the CRAs? Also, it falls off in January, so I am wondering if it is even worth the trouble trying. Or, if it would even change my score as it is nearing the end of its cycle. Does anyone know more about this?
@guiness56 wrote:What is it listed as?
Once they file a 1099-C they cannot collect on it any longer, the debt is considered forgiven.
It is listed as CO with the amount originally charged off. My opinion, which is extremely biased of course 
, is that the balance should read zero. And pushing my senses even more, I would wish that it read "settled" since I actually was required to pay income taxes. I was trying to negotiate with them at a point prior to them forgiving the debt. I know it sounds like a stretch, but what they hay.
I could be wrong, but I think there was something I read before that the banks had to forgive by the end of 2012 and 1099 for some reason or another. This all happened within the past few months, so maybe if I dispute it, they won't bother answering. That is IF the CRA doesn't just cookie cut a validation.
