How does my Ch. 7 last year affect my taxes this year?

[PaKettle]

Hi all, I have not been around here hardly at all since last year. I see some regulars still here, that's good!

As I recall, someone said that if you have a no asset case and are discharged under Ch. 7 it does not affect your tax filing. Is that correct?

My wife and I filed Ch. 7 Nov 2007, were discharged in March 08 and it was a no asset case, no properties, nothing, all was discharged.

I'm doing turbo tax and I did not see any questions about Bankruptcy there so can I assume that I will be okay not mentioning the discharge in March 2008?

Please advise or link me to info. I did a search here but did not find anything on this particular question.

Thanks.
OOPS, I see now that someone did ask a similar question, and it looks like the answer is that the no asset 7 does not affect my tax filing. Sorry I did not find that thread before writing this one. DOH!

[JRScott]

You were discharged in the first quarter of 2008, and I assume closed. There is probably no impact on your filing. They don't generally start taking tax returns unless more than half the year has passed at the time of filing.

[Help!]

Hi PaKettle - I don't think there will be any impact at all, either... but I wanted to say hi and that I hope you are doing well!

[TEW]

Hi PaKettle nice to see you.
I some people have been asking about 1099C and how to report them. after a BK.
I haven't gotten any so....
I am using turbo tax also.

http://www.bkforum.com/showthread.ph...ighlight=turbo
See HHM's comment in this thread

[magyar123]

Hi PaKettle nice to see you.
I some people have been asking about 1099C and how to report them. after a BK.
I haven't gotten any so....
I am using turbo tax also.

http://www.bkforum.com/showthread.ph...ighlight=turbo
See HHM's comment in this thread

Discharged debts do not trigger 1099s, only forgiven ones.

[PaKettle]

Thanks for the clarification of what I thought was true.
(All is well, here, more or less. I'm unemployed -after 12 years at the same place- but we're getting by. Thank goodness we don't have a bunch of debts.)
Good luck to all!

[PaKettle]

Discharged debts do not trigger 1099s, only forgiven ones.

Seems I should know this but if I do I have forgotten:
What's the difference between a discharged debt and a forgiven debt?

[ready2puke]

Discharged is poof gone, forgotten.after your C-7 is closed..Forgiven (I think) is if you've settled with the cc's and the part you didnt have to pay them is the forgiven...thats the part that they report to IRS and your given a 1099 on..
Am I right or wrong here guys?

[Flamingo]

Discharged is poof gone, forgotten.after your C-7 is closed..Forgiven (I think) is if you've settled with the cc's and the part you didnt have to pay them is the forgiven...thats the part that they report to IRS and your given a 1099 on..
Am I right or wrong here guys?

That's correct. If you file bankruptcy, you are protected from paying taxes on the debt discharged; however, if you settle with the creditor instead and are "forgiven" a portion of the debt, that forgiven portion is considered income in the tax year in which the debt is forgiven. The creditor will send a 1099.

[HHM]

You file your taxes as usual. Your BK does not effect how YOU file your taxes.