Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Can a cancellation of debt be revoked?

Can a cancellation of debt be revoked?

I received a cancellation of debt form (1099-C) on a HELOC that we are behind in paying. I filed it with my taxes along with an insolvency form. Everything was good until about 2 weeks after I filed my taxes, when I received a Corrected 1099-C form along with a letter from the lender stating that they were making corrections to the previous 1099-C forms they had sent out for the 2009 tax year. The corrected form showed the amount of debt canceled at $0. What does this mean? Has my debt cancellation been revoked? Did they accidentally send me a 1099-C form on a debt that wasn’t canceled? Could it be that the tax year was wrong? They didn’t tell me why this happened. Unfortunately, the loan is in my husband’s name and he is too overwhelmed to want to call and deal with them right now. They won’t talk to me because I’m not on the loan. I know we have to take the corrected form to our tax person and have our return amended, but what does it mean as far as the debt cancellation? Do we still owe the original amount?

RELATED POSTS:

  1. Need Some Clarification Regarding How to Handle 1099′s for Cancellation of Debt Income? In response to a question I asked previously regarding cancellation of debt related to my 2009 Debt Settlement activity, someone...

  2. Can I file Form 1040A with Form 982 for cancellation of debt in the case of insolvency? Thank you? I have debt cancellation in the amount of $10k. I was insolvent at the time. If I file form 982,...

  3. how to claim insolvency(sp?) on a 1099-C – Cancellation of Debt? According to my debt settlement company, we may not have to pay taxes on a 1099-C we received if the...

  4. Cancellation of Debt and the Insolvency Exclusion The general rule regarding cancellation of debt is that it is a taxable event. But there are some exceptions. The...

  5. Mortgage Forgiveness Debt Relief Act: The 411 If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be...

Written by

Filed under: Insolvency · Tags: , ,

One Response to "Can a cancellation of debt be revoked?"

  1. bdancer222 says:
    Sure sounds like they ‘forgave’ the debt in error and submitted the corrected 1099. If you paid taxes on the previous one, you need to submit a corrected income tax form.

    Don’t be surprised to get collection calls on the loan.

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player