What is the name of your state (only U.S. law)? Ohio
I received a 1099-C form this year for a delinquent debt that stated the debt was canceled as of 7-22-2004. The form was for the 2007 tax year. I filed the appropriate forms with the IRS and paid my taxes on this "income" and assumed the issue was closed.
Five days ago, I received a letter from an attorney's office stating that a "lawsuit is being filed" against me regarding this debt. Can the creditor still collect this money considering that (at least as far as the IRS is concerned) the debt has been "canceled"? What are my options and how do I avoid having my personal property seized if I cannot pay the amount? (Oh and to make matters more complicated, I'm only working on an as-needed basis and getting ready to take maternity leave which leaves nothing to garnish)