Filing Chapter 7 in NJ~ 1099C

[Coldplay]

We will be filing Chapter 7 soon. How far back do they look at your accounts ? What are they looking for exactly ?

Also, will we receive a 1099-C from our foreclosure ? Mortgage is included in the petition. Would we receive a 1099 -C because our credit cards will be discharged ?

Thank you.

BTW, we're in New Jersey and we are below the median incomefor our family size and have no assets. We do have 3 cars. Only one of them isn't paid off. Worth about $7000-$6000 and we owe about $4500. Credit card debt total is $26,000.

[Mensa1]

1099-C isn't a problem for you since you will be disch of debt via Ch 7.
You may want to have a professional prepare your taxes in the yr you rec'd the 1099's, but essentially when discharged via Bk, the forgiven debt is NOT taxable at all. A copy of yoru discharge can be attached to IRS Form 982, and that will take care of the 1099's.

As to bank accts, each TT is different on what they want to see. Most of them only want the statement that encompasses the date of filing. Some may want to go back a few months. Essentially payments made within the 90/120 day period prior to filing is ther critical part here for preferential payments. Can be up to 1 yr for transfers to family members.

[Coldplay]

1099-C isn't a problem for you since you will be disch of debt via Ch 7.
You may want to have a professional prepare your taxes in the yr you rec'd the 1099's, but essentially when discharged via Bk, the forgiven debt is NOT taxable at all. A copy of yoru discharge can be attached to IRS Form 982, and that will take care of the 1099's.

As to bank accts, each TT is different on what they want to see. Most of them only want the statement that encompasses the date of filing. Some may want to go back a few months. Essentially payments made within the 90/120 day period prior to filing is ther critical part here for preferential payments. Can be up to 1 yr for transfers to family members.

Thank you Mensa,

Really the only payment we are making is to our 1 car loan. Our attorney told us to continue paying if we want to keep the car, which we do. Is he correct about that ?

[Mensa1]

Thank you Mensa,

Really the only payment we are making is to our 1 car loan. Our attorney told us to continue paying if we want to keep the car, which we do. Is he correct about that ?

Yep, if that is all you are keeping and that is secured debt, everything else should be disch in Ch 7 bk, barring any snags.