As I have stated before in a thread, we filed chapter 13 in October of 2005. We included our 2nd mortgage, meaning we stripped the lien or Avoided the second mortgage. Therefore, when our bk is discharged, they will have to release the lien. We just got our tax statement from our second mortgage showing us how much we had paid in to interest for the year 2006. Can we still claim that on our taxes when we file? I was under the assumption that we couldnt claim that since we werent making our normal payments. But they show that everything they received went to interest and nothing to principal. It is the exact amount that the trustee has paid them. I have a call in to my attorney but of course they havent called back yet. Any thoughts or help would be appreciated.
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Your attorney probably won't know the answer
In any event, of the cuff, I would say you can deduct it. Mortgage interest, is mortgage interest.
However, I am not an expert in taxes. -
I agree with HHM. I'm not a tax expert either but, during the time that we were in 13, we filed our taxes as normal because whether you were making the payments or someone else, they were still getting the money.Chap.13 survivor
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don't they give you a tax break for being "bankrupt"??? isn't there some kind of tax credit or exemptions for being bankrupt or in a chapter 13 bankruptcy?Comment
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Nope. You can't even deduct the attny's and filing fees. Those are specifically listed as "cannot deduct" in the miscellaneous deductions section.Originally posted by quietsound View PostFiled Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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