1099-c box 5


D

ds

In box 5 of 1099-c, reads "Was Borrower Personally Liable for
Repayment of the Debt".

Does a "yes", or "no" answer, respectively, imply recourse debt, or
non-recourse debt?

neither the instruction for form 1099c (or 1099a) or pub 4681 are
clear on this.

Any insight would be appreciated.
 
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A

Arthur Kamlet

In box 5 of 1099-c, reads "Was Borrower Personally Liable for
Repayment of the Debt".

Does a "yes", or "no" answer, respectively, imply recourse debt, or
non-recourse debt?

neither the instruction for form 1099c (or 1099a) or pub 4681 are
clear on this.

NonRecourse means the creditor is limitd to repossessing the
secured property, and cannot otherwise seek other assets of yours.

So a Yes to Borrower was Personally Liable provides the creditor with
Recourse to try to get other of your assets.
 

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