After a discharge

[doingpoorly]

I'm so scared of these 1099 things and I have not even had my 341 yet.....people have said credit card companies have sent these.......I don't get it. So taxes are hard for a person after a discharge????

If you are filing BK you don't have to worry about 1099's and you can forget you ever heard about them . The only time you would have to worry about a 1099 and how it applies to taxes is if you DO NOT file BK.

[keepmine]

I'm so scared of these 1099 things and I have not even had my 341 yet.....people have said credit card companies have sent these.......I don't get it. So taxes are hard for a person after a discharge????

Are you not reading and understanding what everyone is trying to tell you?
If by chance you get a 1099C on a discharged debt, you use IRS form 982 to let the IRS know it was discharged in bk.

[falken]

I'm so scared of these 1099 things and I have not even had my 341 yet.....people have said credit card companies have sent these.......I don't get it. So taxes are hard for a person after a discharge????

Lets make it simple. You are not going to get a 1099 for anything you included in bankruptcy. Nothing on the condo, nothing on the credit cards, nothing.

The 1099's you hear about are debts settled, forgiven, or uncollected outside of bankrupcty.

Example:
You owe $300k on your condo, you do NOT file bk, the bank forcloses and sells it at auction for $200k. If they can't collect the 100k from you they can send you a 1099 for $100k.

You owe $300k on your condo, you DO file bk. No tax liability, you are done.

[OhioFiler]

Lets make it simple. You are not going to get a 1099 for anything you included in bankruptcy. Nothing on the condo, nothing on the credit cards, nothing.

The 1099's you hear about are debts settled, forgiven, or uncollected outside of bankrupcty.

Example:
You owe $300k on your condo, you do NOT file bk, the bank forcloses and sells it at auction for $200k. If they can't collect the 100k from you they can send you a 1099 for $100k.

You owe $300k on your condo, you DO file bk. No tax liability, you are done.

Even if she has to file Alternative Minimum Tax? What if she has to file a Form 1024 Application for Recognition of Exemption Under Section 501(a) ?

[falken]

Even if she has to file Alternative Minimum Tax? What if she has to file a Form 1024 Application for Recognition of Exemption Under Section 501(a) ?

Anything about the BK or the discharged debt should affect either of those. Should be the same with or without declaring BK on any debt.
I am no tax expert, so feel free to correct me. I really would like to know.

[Bell30656]

I filed my bankruptcy in December. The first week of February I received two 1099C's from different companies included in the bankruptcy. My attorney filled out a simple IRS form for both and after discharge we mailed it to the IRS.

Just because they are not supposed to send a 1099C, doesn't mean that they won't send it anyway. Do NOT ignore them if you receive one.

[denisejohn65]

Thank you all.... I just get so nervous....cuz all this is new and confusing.I just PRAY every day that all this works out and that I do get a discharge. 341 Monday and I'm a wreck at times!!!

[denisejohn65]

If you take your taxes to H and R Block...if you got one of those.....would they know what to do????

[OhioFiler]

If you take your taxes to H and R Block...if you got one of those.....would they know what to do????

It depends. If you get someone there who knows what he/she is doing you're fine. If you get one of their typical bozos probably not.

[denisejohn65]

I guess I have to wait and get a discharge and then next you wait for them to forclose on your place....which could be a while...cuz don't they have to take the condo back? That could take a long while???