1099-C issued after Judgment
A Credit Union gets a default judgment on a debtor. Then issue a 1099-C to the debtor for the full amount in 2007 Does that cancel or satisfy the Judgment as well as the debt?
The Credit Union is still reporting an amount owed and the Judgment is still showing unpaid on the Credit reports.
No collection efforts were made since 2002.
1 Answer from Attorneys
Re: 1099-C issued after Judgment
What full amount?
The 1099-C in and of itself is unconnected with the judgment. If the judgement was satisfied, a satisfaction of judgment would issue.
If the debtor had any account with the Credit Union, the CU would issue a 1099 - perhaps things are being mixed here.