Frequently Asked Questions & Resources

Sort through our frequently asked questions to learn more about your debt and our debt relief program.
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What is a 1099-C?

Did you know that debt cancellation is considered taxable income?

If you received a 1099-C in the mail from a creditor, it’s probably because you were granted forgiveness or cancellation of personal loan debt, credit card debt, student loan debt, or any type of consumer debt.

Creditors report the amount of your forgiven debt to the Internal Revenue Service (IRS), which sends the 1099-C to the original borrower who must use it to report cancellation of debt income on their tax return.

Getting a 1099-C form is common after resolving consumer debt, including credit card debt and student loan debt, auto loans, etc.

Whenever a credit card company or lender forgives $600 or more, it is required by law to file the cancellation of debt notice with the IRS.

What to do if you get a 1099-C?

If you receive a 1099-C form, don’t panic. The form may or may not affect your tax refund or tax return. Ask a certified tax professional or debt lawyer what the tax consequences might be for you, and whether the IRS will count your debt settlement as ordinary income.

People who are insolvent may qualify for an exception in some special cases. Insolvency means the amount of debt owed is more than the total of your income and assets. If you qualify for insolvency, there is an additional set of tax forms you’ll need to fill out on your federal tax return.

Consult a tax professional to find out how settling debts may affect you.

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We know there are a million questions to ask, which is why we maintain a strict no-billing policy. As a client, you can ask us about credit cards, debt consolidation, your credit report, anything really, and we won’t send you an unexpected bill. Instead, you make one low monthly payment that fits your budget. By keeping it simple, you can have peace of mind and focus on paying down your debt.

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Why people choose Tayne Law

A debt relief law firm

Personalized Program

Every situation is unique. We’ll work with you to find a solution that resolves your debt and frees up your cash flow.


You make one low monthly payment and will never get an unexpected bill.

Experienced Debt Attorneys

We have more than 20-years of experience providing clients with debt relief.

Confidential & Trusted

As a law firm, our attorneys follow strict client confidentiality. Our services are discrete and effective.

Work with Creditors

We work with all creditors, whether you’re dealing with a collections firm, a national bank, credit union, or another lender.

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