Qustion re: 1099-C

[Gary34]

I just started a chapter 13 bankruptcy (5 months ago) and am paying back at 100%. Will I still be receiving a 1099-C in years ahead during the bankruptcy?

[justbroke]

There's no way to tell when or if you will receive them. Most creditors, the original creditors, will have sold your account to junk debt buyers (JDBs) who specifically like to file claims in Chapter 13s. I've only ever received 2 of them but discharged over 30 accounts.

More importantly, an IRS Form 1099-A/C won't affect someone that filed a bankruptcy. There's a form that you would complete (I don't remember the form number off the top of my head) should you receive one. The first thing on that form is a checkbox for a debt discharged in Title 11. As you may not know, Title 11 is section of the United States Code for bankruptcy! (Maybe it's form 982?)

So you just have your accountant or a tax preparer file that form with your taxes and voila!

[shipo]

justbroke is absolutely correct, if you happen to get a 1099-C for any debt included in your bankruptcy, you need to file a Form 982 letting the IRS know you are NOT including the amount listed on the 1099-C as income.