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Video instructions and help with filling out and completing zombie debt 1099 c
Zombie dead what is zombie dead basically zombie debt is debt that has been written off or discharged or eliminated but because it's been transferred from collection agency to collection agency to collection agency to collection agency borrowers still get calls trying to collect on that debt it can be debt that was discharged in a bankruptcy it can be debt that was settled it can be 10 it can be debt from a waiver of deficiency from a short-sale it's pretty much any type of debt that starts to get passed from debt collector to debt collector to debt collector and even though the borrower owes no obligation to repay that debt they still get calls on that debt one thing that some people would bring up immediately is wait a minute so let's say in the situation of a mortgage foreclosure a 1099 C is issued forgiveness of debt income is issued that debt is gone right the answer is no that that is not gone what the IRS says is that the 1099 C is merely a reporting tool that the bank issues to the borrower and the IRS to say that it is forgiveness of debt income the 1099 C in and of itself is not a satisfaction a waiver a release it is none of those things it is merely a reporting tool.