So you received a 1099-C cancelation of debt from Synchrony Bank and are now wondering what this means.
In this article, I will not only answer that question, but will show you why this may actually help you.
The 1099-C issuance means your debt has been cancelled but you now may have tax liabilities.
But good news is ……
You’re likely qualify for damages with our associate attorneys help free of charge!
Synchrony Bank is notorious for not marking on the credit report that a 1099c has been issued. This ensures a good chance for monetary damages, which is something our firm specializes in.
What does this 1099-C cancelation of debt mean for your Synchrony charge-offs?
Synchorny frequently issue a 1099-C cancelation of debts for credit cards, installment loans. that it can’t collect in.
For instance, once you default on a Synchrony card, they have 180 days to report the account as a charge-off on your credit report. A charge-off does not mean the debt is cancelled. However, Synchrony Bank selects some of these charge-offs to get discharged through a 1099-C, and only then is the debt not owed
Discover Bank has the right to issue a 1099-c for a debt that you haven’t paid or made a settlement which didn’t pay off the entire amount.
Do you still owe Synchrony the debt after a 1099-C is issued or does it mean debt is forgiven ?
No. You do not owe the debt is a 1099-C is issued. The 1099-c is for IRS to register that Synchrony has forgiven your debt. However Synchrony often violates the law and still tryies to collect or report a balance on your credit report even after a 1099c is issued. This is not allowed and a violation of your rights.
What are you required to do after receiving 1099-C
Once a creditor issues you a 1099-C , it means they’ve reported it as a loss, and you may be required to report it as income on your personal taxes. you should consult with your tax professional to discuss this.
1099-C credit report and credit reporting requirements
If a 1099c is issued, the creditor is required to report the account with a ZERO balance. So do check your credit report to see if the lender has changed the outstanding balance to $0.
If they have not done that, then you may be entitled to monetary damages.
Because by law, the credit agencies have to pay your attorney’s fees, if you settle / win the case. So, the lawyers usually take these cases free of charge.
You can also get the issue corrected, i.e. account marked to $0 or removed from credit reports (usually removed).
Below is a list of lenders that often don’t follow the law when it comes to 1099c
CONTACT ME : if your credit report shows a balance after you received a 1099-C from Synchrony Bank, you may qualify for monetary damages
Email me directly at [email protected] if your credit report shows a balance after a 1099-C is issued
It is against the law for Synchrony to keep on collecting or reporting a balance on your credit after they’ve issued the debt cancelation form.
Our associate attorneys will take legal action against the creditor and credit bureaus and get your credit report correct and may get your monetary damages without any money out of your pock
