Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Was the mortgage for that home included in the Bankruptcy?
If so, was the mortgage re-affirmed?
Was the mortgage in your husband's name also?
Whose name(s) were on the 1099-C?
Last question: are you still paying the mortgage?
The lender filed that form so that they could take the tax credit now. They are allowed to file the 1099-C form when a Bankruptcy is filed - they do not have to wait for a mortgage to actually default. This way, they take the tax credit (for the potential loss due to the Bankruptcy), and then going forward they increase their income as you make the payments.
Since the debt reflected on the 1099-C was discharged in your Bankruptcy, the amount is not taxable income for you, but you do have to file form 982 to indicate the debt was discharged in a Bankruptcy.
You do not still owe the money - in the sense that the mortgage company cannot try to collect it from you if you do not pay. But if you do not pay, the mortgage company can foreclose on the mortgage.
In other words, the debt has not been forgiven in the sense that you can stop paying the mortgage and still keep the home.