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    #1

    Tax time question

    Probably a dumb question, but I am having a moment of paranoia because a friend spooked me with a question!

    last year, we filed Chapter 7, and got our discharge. All credit cards, unsecured loans, and 1 vehicle. Anyway, this guy was telling me I am going to get socked by the IRS when I file 'cause I need to report alll these when I get my 1099-C for the discharged debts....

    Is this true? I thought that debts discharged through BK will not get counted as income. Everything was current until we filed, and nothing was ever "written off". Even the stuff I have read on the site I used to file taxes makes it sound like I don't have to worry about it. have not heard back from my attorney as of yet.

    Any input...other than SEARCH THE FORUM...will be appreciated. I did search, but I dont' have time to read through all of these right now, not finding the answer quickly.
    Tags: None
    #2
    You don't get 1099's for debts discharged in BK. If you had settled debt with creditors outside of BK for pennies on the dollar, they would send you a 1099 for the amount forgiven.
    Stopped Payings CC's: 8/14/2009 | Retained Attorney: 9/23/2009 | Filed CH 7: 12/7/2009 | 341 Meeting: 1/21/2010 - Complete | Discharged: 4/9/2010
    "One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."

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      #3
      Thats what I thought, and told him, but Nooo....he insisted that he was right and I was wrong.

      thanks for your help! I really appreciate it.

      Comment

        #4
        Just recently I remember a forum member received a 1099 on BK discharged debt. I think you need to respond if that happens, but you don't owe taxes on BK discharged debt.
        Last edited by LimpDisc; 01-28-2010, 10:46 AM.
        Stopped Payings CC's: 8/14/2009 | Retained Attorney: 9/23/2009 | Filed CH 7: 12/7/2009 | 341 Meeting: 1/21/2010 - Complete | Discharged: 4/9/2010
        "One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."

        Comment

          #5
          Yes, I received one on discharged debt but from only one creditor so far. I guess I'll be filling out a 982 for that particular one.
          Retained Lawyer: 04/2009 Filed: 09/2009 341 Meeting: 10/2009 Discharged: 12/2009 Asset: 05/2010 made asset Closed: 07/2013 after 47 long months

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            #6
            Your friend is wrong. You only pay the IRS if you DON'T file BK and don't pay your debts. Your fine
            4/09 Converted to a Ch 7 due to loss in dh's income
            5/09 UST now involved no idea what happens next
            7/09 UST has decided to withdraw his motion to dismiss!
            7/27/09 DISCHARGED!!!

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