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bankruptcy and taxes

Posted on: 07th Feb, 2011 02:03 pm
I have a question i filed for bankruptcy chapter 7 last year on my rental properties for some reason when we filed it caused the last property to go back in to the forclosure process. The bankruptcy is finalized but we have gotten a form stating house was mortaged at 109,000 but the market value is 80000

Do i owe money. I live in Minnesota.

If i owe money what do i owe thanks

Again mortgaged value is 109,000
Market value is 80000
Hi daffy!

Welcome to forums!

I guess you filed bankruptcy and included the mortgage in it. In such a situation, though the property was foreclosed, you won't owe the balance amount as you got a bankruptcy discharge.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Feb, 2011 08:13 pm
So do i have to pay taxes on the debt as income or because i went through bankruptcy it is forgiven totally taxes and all
Posted on: 09th Feb, 2011 08:41 am
Welcome Guest,

The taxes will not be forgiven. The forgiven debt will be considered as your income and you'll be liable for paying taxes for the forgiven debt.
Posted on: 09th Feb, 2011 09:17 pm
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