Ecast Settlement Corporation Received a 1099C. Wow earned income, but didn't see!!!!! New York, New York

Incorrect.

There is a difference between DISCHARGE and DISMISSAL. If your bankruptcy is discharged, all you personal liability is wiped out and the accounts included in it are considered "satisfed" due to discharge (unless there is a lien) and no 1099-C will be filed due to plan payments of liquidation. BUT if your bankrupcy is dismissed, that means all the accounts included in it are still VALID DEBTS.

It is YOUR responsibility to contact your creditors listed on your bankruptcy to resolve any debts you are still liable for (you made the purchases... if you're going to rack up money, don't expect it go just go away, that's stealing). Depending on the Statute of Limitations for your state, you have a time limit to resolve these debts before they are considered no longer collectable. Once that time limit is up, creditors can no longer collect on a VALID debt; therefore, FEDERAL LAW REQUIRES ALL CREDITORS TO FILE A 1099-C CANCELLATION OF DEBT if YOU FAIL to rectify the money you basically stole.

The IRS told me to call the Atty. General of NY, so you know there's a problem! Phone number is: 1-800-771-7755, everyone should do this because what they are doing is NOT legit. The company who you originally owed the money to is the only one that can 1099C you!!!!

Contact the IRS and file a formal complaint about these bozos and the 1099C.  The 1099C absolves the debt and makes the amount of the creditors ACTUAL LOSS impuned income for you.

When a junk debt buyer purchases the debt they may file a 1099C if they forgive the debt BUT the AMOUNT on the 1099C MUST BE THE AMOUNT THEY PAID TO PURCHASE THE DEBT (in other words: their ACTUAL LOSS), NOT THE AMOUNT OF THE DEBT THEY PURCHASED.

Simplified example:   You owe Creditor A $10,000.  Creditor A sells your debt to partially offset their losses (this is a common business practice.)  JDB purchases your debt from Creditor A for $500.  JDB can file a 1099C for the $500 they paid to purchase the debt.  They CANNOT lawfully file a 1099C for $10,000.  If the do, they are violating IRS regulations.  There are exceptions, such as mortgages and such, and the IRS can explain to you what the exceptions are.

You can check with the IRS or an attorney.

Good luck.