Posted on: 19th Mar, 2012 01:47 am
We filed Chapter 7 in 2010. We had a property $450,000 discharged surrendered. Now we have received a 1099-c form from the lender. Under box - 5, it states that borrower was liable for repayment of debt and box - 6 of the 1099-c, it mentions no bankruptcy filing. I have all my paperwork from the courts stating we are discharged from this property. My question is will I have to file this $450,000 as income since the IRS received the same form from the lender?
Hi Kelvin,
Incorrect information has been mentioned in your 1099c form. You should contact your lender and ask him to rectify it. If required, you should contact your bankruptcy attorney in this regard and take his opinion.
Thanks,
Jerry
Incorrect information has been mentioned in your 1099c form. You should contact your lender and ask him to rectify it. If required, you should contact your bankruptcy attorney in this regard and take his opinion.
Thanks,
Jerry
Hi Kelvin!
Welcome to forums!
If you were liable for the debt, then in the first place you shouldn't have received the 1099c form. Receiving this form means that your debt has been forgiven. Once you file bankruptcy and do not reaffirm the debt, you won't be liable for paying the deficient balance resulting from the property sale. However, you may be liable for paying the taxes for the forgiven deficient balance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you were liable for the debt, then in the first place you shouldn't have received the 1099c form. Receiving this form means that your debt has been forgiven. Once you file bankruptcy and do not reaffirm the debt, you won't be liable for paying the deficient balance resulting from the property sale. However, you may be liable for paying the taxes for the forgiven deficient balance.
Feel free to ask if you've further queries.
Sussane