Do I have to pay twice on a 1099 c CC debt?

[josef]

I was discharged last year (personal CH 7), I have one business CC that I have stayed current on even though the account was closed by the CC company soon after filing CH 7. I figured that even after my discharge my business might still be held liable for it and decided just to pay it off rather than confront other headaches later on over a small debt, less than 1000.00.

I have been making payments slightly above minimum for 6+ months and there is no interest being charged as long as I pay on time each month.

This week I have received a 1099 c cancellation of debt for the entire debt. This debt was cancelled on 12-31-08. I have also already received my regular February statement requesting minimum monthly payment as usual.

I did not understand this? Why should I have to report the forgiven debt as income and be taxed on it, AND still have to pay the remaining balance on the account even when it is less than the amount of the 1099 c forgiven debt? I called the CC co and basically the guy told me that is just the way it is after discussing with several of of his managers. I can accept paying one or the other, but both???

Can this be right?

Thankyou in advance for any help or thoughts.

[JRScott]

Actually if the credit card was part of a bankruptcy you should have received no 1099 as debt discharged in a bankruptcy is not subject to be taxed.

If you filed with a lawyer take the 1099 c to his office and have them view it.

It is up to you whether you wish to continue paying the account, it is of course honorable to pay ones debts when able however legally you have no responsibility to pay it if it was discharged in the bankruptcy.

[TEW]

I was discharged last year (personal CH 7), I have one business CC that I have stayed current on even though the account was closed by the CC company soon after filing CH 7. I figured that even after my discharge my business might still be held liable for it and decided just to pay it off rather than confront other headaches later on over a small debt, less than 1000.00.

I have been making payments slightly above minimum for 6+ months and there is no interest being charged as long as I pay on time each month.

This week I have received a 1099 c cancellation of debt for the entire debt. This debt was cancelled on 12-31-08. I have also already received my regular February statement requesting minimum monthly payment as usual.

I did not understand this? Why should I have to report the forgiven debt as income and be taxed on it, AND still have to pay the remaining balance on the account even when it is less than the amount of the 1099 c forgiven debt? I called the CC co and basically the guy told me that is just the way it is after discussing with several of of his managers. I can accept paying one or the other, but both???

Can this be right?

Thankyou in advance for any help or thoughts.

the debt is discharged and you are wasting your money stop paying

[josef]

I should have mentioned, they have not noted on the 1099 c that it was cancelled due to a bankruptcy proceeding as I have read about on the web.

The only reason I am still paying it is that I am not certain if it has actually been discharged or not, because my CH 7 was personal and this card was used exclusively for an LLC. I even had to give them my EIN when I applied for it.

[TEW]

if you were chapter 7 no asset it was discharged