Taxes After BK

[Davidca]

What is the name of your state? California

I am trying to figure out how to arrange my taxes to include the bk Ch7 I just finished. Does anyone know how often a (or which - MBNA, AMEX, etc.) credit card companies report dissolution of debt to the IRS?

 

[Ladynred]

You really don't have to do anything. You will not be getting any 1099's for discharged debts. Bankruptcy means you are insolvent, and insolvency means you do not have to claim any cancelled debts for which you might normally receive a 1099, as income on your taxes.

You should read this.. look at 'Exclusions"

http://www.irs.gov/publications/p908/ar02.html#d0e1058

 

[Davidca]

My CPA told me that they have the option of sending a form so the IRS can back out anything from a previous year. Does anyone know which credit card companies do this?

 

[Davidca]

Oh I see what you mean. So is he wrong? ie, this is not done in the situation of bankruptcies? Its only done for non-bk write-offs?

 

[Ladynred]

Correct. You can't even predict which of the larger banks would issue 1099's except for settlements and even then they apparently don't always do it.