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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We are thinking of filing for chapter 7 bankruptcy. We received

Resolved Question:

We are thinking of filing for chapter 7 bankruptcy. We received a 1099-a with a deficiency amount of $93K. We haven't received a 1099-c yet and read on line where we will need to file before receiving the 1099-c as it will wipe out this claim and we can file with the irs pub 982 (by checking title 11) as it will exempt the taxes on the $93K. If we need to file before receiving the 1099-c, where do we put the information for the 1099-a in a bankruptcy form?. Under schedule A & D in the bankruptcy filings??? Thanks.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

what type of debt did you received the 1099 on

Customer:

It was an investment property or second home bought for my mother and aunt to live in but my became too diabled to move and my mom ended up living with us so we had it rented out for 2 years (but because we lost money monthly with the rent being less than what we owe on the mortgage) we decided to let it go into foreclose. There was no second on the condo, just the first. We received the 1099-a in december of 2010; box 1 had date of 12/15/10; box 2 had balance of principal outstanding of $162,210; and box 4 had fair market value of property at $70K; and bo 5 said we were liable for repayment of the debt. In our research, the Nevada deficiency judgement law states that the lender has 6 months to go after the debtors. However, it's been more than 6 months, but we read where if you file for chapter 7 bankruptcy BEFORE receiving the 1099-c, we can discharge this debt. When come tax time, we can check a box under publication 982 (that this debt was discharged under title 11 --- bankruptcy). Thank you.

Customer:

We just need to know how to include this information in the schedules. Thank you.

WebLaw :

Thank you.

WebLaw :

You need to schedule the debt as an unsecured debt in schedule E.

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Customer:

It asks under schedule E (unsecured priority), the type of priority. I don't see deed of trust. It just lists wages, taxes and certain other debts. What do you think the type of priority claim is this? Also has where to include under means test and next to it a box where to exclude from means test. Question is, do I put in the claim amount as the difference in the fmv and what's owed in the principal balance (ie. 92K) and the what should I put in as the priority amount? And do I exclude this from the means test? Thanks so much.

WebLaw :

"E" was a typographical error.

WebLaw :

B 6F Schedule F - Creditors Holding Unsecured Nonpriority Claims is the correct schedule

WebLaw :

It would not be included in the means test

Customer:

Okay, last questions and thanks so much. Do I check contingent, unliquidated, disputed, or subject to set off? Or, do I need to check any at all? What would I put as a claim amount-- the deficiency judgement balance amount of $92K? Thanks!

WebLaw :

You would list the deficiency judgment balance and not check anything since it is not contingent or unliquidated nor disputed nor subject to set off

WebLaw :

It has been my pleasure to work with you

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