Just received two 1099-C's from Citi Bank

[ready2puke]

Thanks so much SMinGa2,
Another question about this: If the SOL for all my debt is Sept 2012 and I am not sued by then...can either the original creditor or a collection agency still 1099-C me after that date? Or in the years to come?
Since its assets vs. debt at the time they forgave the debt, I have to make sure I'm insolvent like forever?

[SMinGA2]

I'm not an attorney, but I am pretty sure the answer is yes. They should be able to file a 1099C at any time.

My understanding: SOL being up means they can't sue you, or if they try then you have an affirmative defense against the suit: the debt was time barred. SOL doesn't mean that you no longer owe the debt on a certain date. The 1099C means they have forgiven it, and you no longer owe it.

The insolvency balance check is before they forgive the debt - so the debt in question gets counted in your equation. The IRS instructions for form 982 are very clear on that part.

[ready2puke]

Thanks thats what I was afraid of..so until things turn around for me I'm ok..but I'll probably still have to file BK and now deal with the insolvency...And hits just keep on comin'
R2P