Taxes on Debts

[jwdad]

I am really confused. I have around 117,000 in unsecured debt and filing chapter 7. Will I have to pay taxes on that? I have 120,000 in assetts but owe 90,000 on the house.

Do I have to pay taxes on the amount that I am insolvent or do I have to pay income taxes on any of since I am filing BK?

[AngelinaCatHub]

I have never heard of taxes on bankruptcy non secured debt. You will get a 1099 on something like a forgiveness of a partially forgiven secured debt that you will keep. Even a secured debt like giving up the house, there is no tax as the security covers the mortgage. Short of it, is, If I loan you $100.00 and tell you I'll accept $50.00 and we'll call it a done deal, you would get a 1099 for the $50.00 you did not have to pay me. 'Hub

[keepmine]

You have no tax obligation for debts discharged in bk.
Should you get a 1099C, use IRS form 982.