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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 Has my debt cancellation been revoked?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?


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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.

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