I had a business line of credit at a local bank and couldn't make the payments. I told the bank I would do my best to pay it up, and came to an agreement. After a couple of months I was unable to pay anything more. They sent me a 1099C dated 12/31/11 I assumed my obligation to the bank was over as I needed to deal with the IRS for the additional $46,000 I received from the 1099C. On May 28, 2013, a withdrawal was made from my checking account for almost $1700. I called the bank and asked what was going on and was referred to the loan person. He told me that filing a 1099C was a just a requirement with IRS, and did not legally release me from the loan. I would like to know if this is true.