Posted on: 07th Feb, 2011 07:19 pm
I live in MInnesota i recieved a 1099-A form after foreclosure, i believe i have been discharged from bankruptsy. It is checked i am not required to pay back the debit. Why am i receiving the 1099 Do i need to repay it or is it just for my records
Hi Guest!
Welcome to forums!
You will receive the 1099 form because of the fact that your property went through foreclosure. This is irrespective of the fact whether or not you filed bankruptcy.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will receive the 1099 form because of the fact that your property went through foreclosure. This is irrespective of the fact whether or not you filed bankruptcy.
Feel free to ask if you've further queries.
Sussane
Thanks for the answer does that mean i have to pay taxes on it or since it says no that i am not responsible for debt does that mean i don't pay taxes
Hi Guest,
As the deficient balance has been forgiven by the lender, you'll be liable for paying taxes on the forgiven debt.
Thanks
As the deficient balance has been forgiven by the lender, you'll be liable for paying taxes on the forgiven debt.
Thanks
So why will i have to pay it back if i filed bankrupy and it was discharged or bandruptsy was granted to us. I don't know how we would be liable for taxes. I thought that is why we filed bankrupcy versus letting it go into foreclosure.
Welcome Guest,
Taxes never get discharged in bankruptcy filing. Forgiven debt is considered as an income for the consumer. Thus, the consumer will be liable for paying income tax on forgiven debt.
Taxes never get discharged in bankruptcy filing. Forgiven debt is considered as an income for the consumer. Thus, the consumer will be liable for paying income tax on forgiven debt.