I was told I could get taxed on the money saved, which would be for me a large sum. The creditors would send me a 1099 and my debt relief would be taxed as taxable income. Has anyone experienced this?

You could... it depends on how its settled and if you itemize etc. Check with CPA in your area. We did not have to pay taxes on our resolved debt. Personally, even if I had to, it would be so worth it!!!

By law you will pay in taxes if your debt relief is over a certain number. Google what that number is in your state. The people that are saying they didn’t get taxed are people who’s debt fall below that numerical figure in which a minimum base line has to be formed. Ex: let’s say in ny it’s over $1000. If you have a 20k debt. And you settled it for 10k every penny after 1k in Relief is taxes so you will be taxed for the 9k the collectors took off of your balance. There’s no such thing as if they report it or not. They do, if they don’t the company will get sanctioned by the fed. And they crack down hard on this. You get taxed because at the end of the year, your original creditor like citi bank for example will now write off your balance as a loss to the government, the government pays them a % of that loss from the taxes you pay back in relief. The bank always wins.

I was told the same thing but didn't receive any 1099's

Yes., this happened to me. I received a 1099 and I had to claim on my taxes as income.

I think it's the other way around

You may or may not. It will come from the creditor, or if you're audited for past refunds. It not horrible!