Taxes this year

[Mudder44]

This is my first year in Chap 13, just got started the payments last August. Approximately 40% of credit card debit was wiped out. Since I am protected under Chap 13, does this mean that I don't have to count that 40% of debt that was wiped out as income on my tax return this year?

I thought the person I discussed this with last year at H&R block told me I did have to include that 40% of debt, but then I realized at that time I was in a debt settlement plan and the number that was supposed to be forgiven were the same. From what I have been able to read on these forums and other places, I don't have to worry about any that, just file my taxes as usual without regard for of the credit card date that was basically forgotten.

Thanks!!

[lrprn]

Since you filed bankruptcy, you do not have to pay taxes on any debt that will wiped out as a part of your plan.

If you do receive a 1099 form listing your discharged debt from a lender, talk to your lawyer about how to deal with it in your state when you file your national, state, and (if necessary) city 2010 tax forms. Depending on the circumstances, you may still need to fill out IRS form 982 and demonstrate insolvency.

Your tax preparer, accountant, and/or bk lawyer are the best source of how to handle this situation if it arises. There's also a good bit of information about this topic in this 2008 forum thread - http://www.bkforum.com/showthread.ph...and-Chapter-13

Good luck!