1099-C Discharge Without Debt Cancellation Not Consumer Protection Law Violation
By EsqSocial Corporation 10/05/21
Once again, a borrower who argued his debt was cancelled when he received an IRS Form 1099-C was told by the court that it was merely discharged. The court says “discharge” is not “actual discharge.” While acknowledging that a common consumer may not easily understand the distinction, the court held that “discharge” for IRS reporting purposes is not necessarily “actual discharge” of the obligation......
By: McGlinchey Stafford