Cancellation of Debt Question
After some legal action, a large home building supplier dropped their claim that I had not appropriately cancelled a roofing contract and thus owed a 25% restocking fee - $3352. This was several years ago and credit scores were returned to normal levels and this did not show up on any credit searches w hile buying a new home.
Today, I received a 1099-C, Cancellation of Debt for the amount above. My attorney is telling me that since the debt never incurred, this was sent in error. Since the larger supplier is not willing to discuss further, how do I deal with the 1099? I feel I should not have to claim this as income.
Please advise, Thank you.