Cancellation of debt to IRS? BK

[LadyInTheRed]

i assume insolvent meaning unability to pay for a certain time frame?

No, insolvency means your debt exceeds the value of your assets on the date the debt is forgiven.

I posted some links in posts 2 and 5 of the following thread that I think may be helpful to you. http://www.bkforum.com/showthread.ph...n-of-debt-form

The BK will not help with the 1099-C because the debt has already been forgiven. If you owe tax on the forgiven debt, the tax debt will not be dischargeable in bankruptcy until at least 3 years after you file your return.

If you made less than $9,750, you may not have been required to file returns in past years. But, if you were required to file, you should get that taken care of asap. The IRS does not go away like other creditors sometimes do. When the IRS comes after you, the FTB won't be far behind. Penalties and interest can make a very minor tax grow to an unmanageable sum. Go see an accountant to advise you on the 1099-C and whether you need to file a 2012 and earlier returns. I agree that seeing a tax attorney is overkill at this point. If you owe tax that you can't pay, you can arrange for a payment plan.