I had a expediting truck and turned it back to the bank?
Answer:
Even though you signed an agreement with the bank when you purchased the trunk you will try to make you pay for there loss of the trunk. The only way you can block this would be to file bankrupt and I'm not sure you want to go that route.You will take you to court. It will still show up on your credit report. Have you tried talking to a credit counselor or a free legal service? See if your community provide a free service so that you can talk to an expert .
If I understand you correctly, you gave the truck back, the bank sold it and there is a deficiency balance. The bank contacted you and tried to get you to agree to pay the deficiency balance, but you did not agree to anything. Then the bank sent you a 1099C form for the Debt Cancellation. If the bank issued you a 1099C, then they have cancelled the debt and are not expecting you to make payment. The 1099C amount has to be included in your income when you file your tax return. Essentially the lender has said that although you owe the money, they are forgiving the debt and the IRS deems that to be taxable income..
I don't know what state you're in, but I do know that if the bank that owned the truck did not get ALL their money that was owed on the truck after it was re-sold you can be held responsible for the balance.
From what you've described, your credit score is already damaged most likely because you've ran your bills up too high, which could put you in the 'overextended' category of credit.
You can't avoid them forever, you probably need to talk to them and tell them your situation, see if you can bargain with them, and if you just can't pay your bills you might need to start looking into the bankruptcy laws in your state. If you own property, be careful because it may be that in your state they can attach a lien to it, I would look up your state laws on the Internet and see what you can find.
Good luck.
If the bank resold the truck and did not get complete pay off for it, you are responsible for the rest of the debt. That is true. If you don't pay, it will show on your credit as a negative, do not avoid the calls, try to work something out with the creditor. They want the money as much as your don't want to be harrased and they will not go away. So, see what you can work out with them.
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