“When the lending institution decides the debt is noncollectable, then issues you a 1099C for the “forgiven debt”
Pardon my iggernunce, but why would they do that? I thought they reported such things to the evil credit rating agencies to ruin your credit.
When the debt collectors are unable to collect the debt, the lending institution writes it off as a business expense then issues you the 1099C, copy to IRS. That’s when your troubles REALLY begin.