Hello -
To enter information received on a 1099 C go to:
Federal Taxes TAB
Select Wages and Income
Select "Jump to a full list"
Scroll down to "Less common income"
Select Start next to "Miscellaneous Income, 1099-A, 1099-C"
Follow the prompts to enter all your information
I have done that already I'm in form 982
I already entered 1099C
in Form 982 Part 1 (1b) marked X
line 2- 2,366.
line 3 - yes
Part 11
There is an attachment added
Now I don't know what to do
I would suggest you seek professional help at this point. In my (limited) experience with this, if you don't know what to do it's usually because you have a bankruptcy or foreclosure. So the legal representative that handled the bankruptcy or foreclosure is *THE* best person to help you fill this out correctly. This is more a legal matter really, than it is a tax matter. Doing things wrong can be costly and make the cost of professional help seem like a pittance in comparison.
On top of that, the fact that you posted in the Business & Farm section indicates to me this is not a "simple" personal debt such as credit card or a foreclosure on your personal primary residence. So that's the major reason we don't get legal advice here. Only tax advice. So at this point my tax advice is that you get professional help. This is doubly important if you state also taxes personal income.