Posted on: 09th Apr, 2010 10:58 am
Bank forclosed on a primary and rental I received 1099-A for the rental 244000. and 122000FMV in 2008 marked yes for personaly liable Filed for bankruptcy chapter 7 and was discharged in april 2009. I hven't been able to do my 2008 taxes because my tax acct said I need a 1099-C from the bank is this true
Hi Marie,
Lender sends you a 1099C Form when they have forgiven the outstanding balance on the debt. You can contact your lender to see if he will collect the remaining debt from you or will forgive it and send you a 1099C Form. However, since the debt has been discharged through bankruptcy you are personally not liable for the loan. Even if the lender does not send you the 1099C Form, you could still claim exemption from paying taxes as the debt has been discharged through Chapter 7.
Lender sends you a 1099C Form when they have forgiven the outstanding balance on the debt. You can contact your lender to see if he will collect the remaining debt from you or will forgive it and send you a 1099C Form. However, since the debt has been discharged through bankruptcy you are personally not liable for the loan. Even if the lender does not send you the 1099C Form, you could still claim exemption from paying taxes as the debt has been discharged through Chapter 7.