Thank you for your response! Do you know why they issue two forms then? Am I going to get in trouble if I don’t file both forms? I read the article about 1099c and it stated. Please advise! Thank you!
Multiple Debtors
For debts of $10,000 or more incurred after 1994 that involve debtors who are jointly and severally liable for the debt, you must report the entire amount of the canceled debt on each debtor's Form 1099-C. Multiple debtors are jointly and severally liable for a debt if there is no clear and convincing evidence to the contrary. If it can be shown that joint and several liability does not exist, a Form
1099-C is required for each debtor for whom you canceled a debt of $600 or more.
For debts incurred before 1995 and for debts of less than $10,000 incurred after 1994, you must file Form
1099-C only for the primary (or first-named) debtor.
If you know or have reason to know that the multiple debtors were husband and wife who were living at the same address when the debt was incurred, and you have no information that these circumstances have changed, you may file only one Form 1099-C.
