Legal Question in Credit and Debt Law in Florida
1099C from creditor
do all creditors issue a 1099C to debtor, or is it just banks that are obligated by the IRS to do this? Also is the debtor considered insolvent if they have a house in Fl. or is that part of the assets they have to claim to IRS?
1 Answer from Attorneys
Re: 1099C from creditor
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
No, they usually only issue a 1099 if they forgive some or all of a debt as it is considered income to the debtor. A debtor is not considered insolvent if they own a house.
Scott R. Jay, Esq.
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