stion 10 of 75. onal liability on a debt will be determined by whe Box 5 of Form 1099-C is checked. cox 7 of Form 1099-C contains an amount. he taxpayer's liabilities exceed the value of their ass he lender can repossess or foreclose property secu stion 10 of 75. onal liability on a debt will be determined by whe Box 5 of Form 1099-C is checked. cox 7 of Form 1099-C contains an amount. he taxpayer's liabilities exceed the value of their ass he lender can repossess or foreclose property secu