Subsidy

Hey all. I have a question for all of you ex farmers agents about the subsidy program, I'm interested if any of you went through this or anything like this. I was an agent way back in 2006-2008. I like everyone there accumulated a $12,000 subsidy loan that was suppose to be paid back when you left. Well when I left they made no attempt to contact me about it, they just sent it to there collection agency that they have and they wanted full payment or no part of me. So I thought nothing of it. I filled bankruptcy in 2010 and was going to included the subsidy loan from farmers insurance but at about the same time they sent out a 1099 with the $12,000 subsidy loan amount in it. Here is the huge catch. Back in 2006-2008 my 1099 included my $12,000 subsidy in it. So how can farmers make me pay taxes on that twice? I contacted a lawyer and we are currently looking into it. Any advice would be greatly appreciated. It has been a huge tax mess for me considering they sent the 1099 to an address I was not at anymore and I never got it.
Thanks for any and all help!

Wade, You just posted this. I received my collections notice from Farmers recently. I sent back in a letter stating I wanted written documentation of why they are asking for payment (full amount too of 25,000) when they taxed me on it in '13 and '14. According to the IRS this is suppose to be a 1099E form. I also looked through my contract and i couldn't find where it talks about subsidy being a loan and requested them to send me my full contract. I received an updated contract that i signed a few months after i went career. They did not send me my original contract. When I learn more of what happened I will post. Maybe if i win we can all get together and find redemption. FYI it is not a true non interest loan. there is an impounded interest on it you just have to find the right documents. The best thing anyone can do before you leave is print off the career subsidy page tracker that shows your new business commissions and your subsidy payments. This shows what you should have been taxed on. Currently i am in collection, but i have sent in my letter to Farmers and am waiting to hear back.. I am learning not to stress about this because all i can do is all i can do. I just hope I win and can help the rest of you.

Any update on what your lawyer said about your situation? I would love to hear more. Thanks!