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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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I have a question on bankruptcy and a 1099c. A 1099c might

Resolved Question:

I have a question on bankruptcy and a 1099c.

A 1099c might not be issued for several years. What happens if I've already completed bankruptcy and a 1099c is issued?

Does bankruptcy protect me from future tax consequences involving property that was involved with the bankruptcy?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

The IRS rule is a Bankruptcy must be filed before the tax return is filed for the year the 1099-C is issued. In other words, the Bankruptcy can be filed at anytime before the 1099-C is issued.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

Customer: replied 5 years ago.
Does this mean no 1099-C will be issued ever if the bankruptcy has been filed?
Expert:  cfortunato replied 5 years ago.
The lender can issue a 1099-C even if you have already filed a Bankruptcy. However, you will not have to include the 1009-C amount as taxable income if you have already filed a Bankruptcy.
cfortunato and other Bankruptcy Law Specialists are ready to help you

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