The requirements of the 1099-c, Forgiveness of Debt is for any amount forgiven over $600. The argument for not filing a 1099-c for amounts over 600.00 is that one is not likely to know how much principle was forgiven. This is an important part of the code for the 1099-c. Believe it or not. Most Credit Issuers do not know the answer to that question. Lastly, how would the IRS know that a debt was forgiven? These transactions of buying debt are not reported to the IRS. I have been buying debt for 11 years and wrote a book on the subject.

Most companies that own debt and those who collect for them will take a deep discount on a lot of the debt they purchase/collect. Individuals should be able to routinely settle debt for as low as 20 cents for every dollar they owe. This would be too expensive for Strike Debt to fund.