Creditors Beware – Complying with IRS Rule May Cancel Underlying Indebtedness

2017Consumer Finance Law Quarterly Report, vol. 71 nos. 1 & 2

Lewis Rice members Larry E. Parres and John J. Hall wrote an article in the Consumer Finance Law Quarterly Report. The authors warn creditors of the implications of filing Form 1099-C, which informs the IRS that the full amount of an outstanding debt is cancelled, but that the creditor intends to continue collection activities. 

To read the full article, click under "Resources" below.

Larry spends significant time advising the Firm's corporate clients in purchasing assets and businesses throughout the country, including the purchase of several heavy industrial operations, various real estate transactions, and intellectual property sales. Larry's practice also includes banking litigation, where he effectively enforces his clients' rights under various loan and other legal documents and contracts.

John’s practice focuses primarily on corporate reorganizations, bankruptcy, loan restructuring, commercial finance transactions, municipal collections, creditors’ rights litigation, and distressed transactions. His practice includes representation of national, regional, and state banks and credit unions, secured and unsecured creditors, debtors, trustees, and creditors’ committees in chapter 11 reorganization, chapter 9 municipal debt adjustments, chapter 7 liquidations and other actions in state and federal courts.