If a creditor sends you a 1099-C is the debt 'forgiven' and how will it appear on your credit report?

Answer 1

If a creditor sends you a 1099-C, it means they gave you a settlement or discount and 'forgave' $600 or more of the amount owed. This 'income' must now be reported on your tax returns for the year it was 'forgiven'.
It will usually show up on your credit report as 'settled for less than full balance' or something to that effect.

Answer 2

In some instances, the creditor will deduct the loss as an expense, in which case you must record it as income. If the creditor is expensing the lost debt, you get the form 1099-c, however most people are technically insolvent (meaning assets