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Monthly Archives: June 2013

Can a lender collect on a debt after issuing Form 1099-C to the defaulter? and More…

Bankruptcy Can a lender collect on a debt after issuing Form 1099-C to the defaulter? A bankruptcy court says no. A couple failed to pay their home mortgage, and the bank foreclosed, issuing them a 1099-C showing debt discharge income of $5,000, the excess of the mortgage balance over what the house was sold for.

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