Is there a 1099 for Ch. 7?

knguye11

Junior Member

Bankruptcy Newbie

Joined: Mar 2009

Posts: 27
#1

Is there a 1099 for Ch. 7?

03-10-2009, 04:11 PM

I took equity out from the main residence to purchase another house in AZ (I'm in CA). The house in AZ is now underwater. So after filing Ch.7, will there be any tax that I have to pay on the discharge of the house in AZ?

Also, the house in AZ I purchsed with a friend. After I filed BK, does this hurt my friend any any way? He doesn't plan to file BK.

Thanks in advance.

Last edited by knguye11; 03-10-2009, 04:17 PM.

There is light at the end of the tunnel, you just have to walk toward it. K-11
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JRScott

Senior Member

Bankruptcy Guru

Joined: Apr 2007

Posts: 5012

State: North Carolina
#2

03-10-2009, 08:08 PM

There are no 1099s in a BK for discharged debt.

If your friend is on the mortgage for the home they would be solely responsible now. If they aren't on the mortgage then the bank is within its right to foreclose as part of the BK and take possession of the home.

May 31st, 2007: Petition Filed by my lawyer
July 2nd, 2007: 341 Meeting Held
September 4th, 2007: Discharged and Closed.
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