I've seen a few people saying they got 1099 forms after debt was discharged. Does that mean after a BK we will get a 1099 for the debt and have to pay taxes on the amount discharged??? Ouch! Thanks for any info!
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No, you shouldn't have to pay anything, or even claim it. The BK department of the creditor discharges (erases) the debt, but I would bet the department that handles gains and loses doesn't even know the debt was discharged and the 1099 was generated and mailed out. It's a good idea to hang onto it and ask a tax professional just to make sure.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.
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