Increased Ch 7 scrutiny

[anonymuse]

Assume your credit liability is 85K. If you are insolvent to the tune of 85K when you make the arrangement with the creditors, your tax liablity is effectively zero. If you are insolvent to the tune of 50K, your taxable income on the 1099-C would be 35K.........The strategy would be to keep the 1099-C amounts under your insolvency number.

Please explain what the "insolvency number" is.

Back to the original post, I am waiting for one thing before I file--additional medical bills. I was in the hospital last week (who knows what the heck the copays on that will be) for tests, and now I need a CPAP machine since they confirmed another doctors diagnosis of sleep apnea. I want all that resolved so that I know how much my monthly co-payments will be.

Ok, here's my unethical side coming out. A lot of times, once they figure out this machine works, the insurance company will buy instead of rent the machine. It means one big copay ($400) for me, but then no more monthly stuff. If I waited to file BK after that all comes through, could I put that $400 in my BK? Or can medical insurance companies dismiss you if you file BK and some of your past medical bills are discharged in the BK?

[Minnymouth]

Insurance companies cannot dismiss you because you file bankruptcy that I know of............ especially if its thru a company plan.... maybe even private pay.

They maybe able to reset to a higher co-pay?? Once your file bankruptcy they know you can no long file again for 8 years.....

Insurance companies are more than familiar with bankruptcy procedures, they go thru it all the time......... especially medical insurance, hospital bills, etc.

Yes you could wait and include the machine also in your bankruptcy.....

Unethical, well maybe, health wise need - yes!!!

[alh]

Might be helpful

http://www.nolo.com/article.cfm/ObjectID/63E64ADE-B509-4850-803EAFC794283FC0/catID/8DA53DB0-172E-4CFD-94C67EF8DD1E31BA/213/208/212/ART/

[anonymuse]

Unethical, well maybe, health wise need - yes!!!

If I get a nasty trustee, I guess she/he'll tell me that breathing at night is just overrated! (I stop breathing while I sleep.)

At least it's not for a fur coat or a plasma TV.

[no_it_all]

Please explain what the "insolvency number" is.

That would be the amount you are insolvent by. To wit: 200K in assests, 300K in debts. You would be insolvent by 100K. Keep your 1099-C numbers under that and there will be little or no tax...The link given a few posts above will give you a couple of more examples........