Reed argues that the United States is barred from collecting on the loan because her debt has already been discharged. In support of this argument, Reed relies on the 1099-C received from BLC.
However, a Form 1099-C, as a matter of law, does not operate to legally discharge a debtor from liability on the claim that is described in the form.
See In re Zilka, 407 B.R. 684, 689 (issuance of IRS forms did not itself operate to legally discharge debtor form further liability on loans);
Owens v. Commissioner, 2003 WL 21196200 (5th Cir. 2003) (issuance and filing of Form 1099-C does not constitute actual cancellation of the loan);
Leonard v. Old National Bank Corp., 837 N.E.2d 543, 545 (Ind.Ct.App. 2005) (filing a Form 1099-C is merely an informational filing with the IRS done to report an event that has already happened, and thus does not operate to cancel debt itself);
Sims v. C.I.R., 2002 WL 1825373 (Form 1099-C does not establish that petitioner's debt was ever discharged, which necessarily means that such form did not operate to cancel such debt).