need 1099 help!

[tolinghous]

oklahoma...

i am new to this board so please be easy on me
i will update my profile asap.

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several yrs ago we had our house burn down... we collected ins money , bought new home blah blah blah...

after we get back on our feet , we borrow money against the burnt house...(partially repaired) to finish repairing it to later rent out.

we hire a contractor for xx amount of mmoney only to be ripped off with little money left and no complete house.

the city of shawnee declares the house dilapitated, and bull dozes it down and sell the lot in sheriffs sale (after many calls to mtg co, they would not help in this issue) i went to city council meetings to get this pushed back twice.


today we receive a 1099 form, for $24,000, from some portfolio company.

in other words by filing this with our return we will be stating we made this 24 k that we didnt. it was put into the house of doom as i call it.


i am lost here at what to do. i was told i may be able to contact them and make them an offer to pay off debt...an amount consideranbly smaller than what we owe

or file bankrupcy.



thanks for any input