Can a collection agency collect on debts that 1099-C have been filed?

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1177584

2026-03-16 21:05

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No.

If the debtor has received notice that the debt has been cancelled (forgiven) they should receive a IRS form 1099-C as the amount of the forgiven debt is now considered taxable income.

Given those circumstances, the debt no longer exists and is no longer collectible.

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