I had my CHAPTER 7 BK discharged last may 2010 and received a 1099 - C from one of the credit card holders of their discharged debt canceled, Box 2 $7204 and Box 4 says Credit Cards and Loans and Box 6 has the Bankruptcy box checked and Box 5 says yes that borrower was permanently liable for the repayment of the debt. QUESTION is do I need to include this form in my 2010 tax return and where or do I just ignore it as I understand, THAT ALL MY CREDIT CARD DEBT DISCHARGED BY MY CH 7 BK IS NOT TAXABLE. Also when is my case Closed ? as I REMEMBER THAT IT TAKES ABOUT 1 YEAR FROM THE DISCHARGE DATE. Thank you all for all your help!!
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It's that you get a special tax attribute since it was discharged in bankruptcy. You need to complete IRS Form 982. I would have a tax professional do your taxes this year, and bring your discharge with you. Make sure you mention 982, because some of these tax "professionals" may not be good with Form 982.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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