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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I had a rental property that was recently foreclosed (Oct 12)-

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I had a rental property that was recently foreclosed (Oct 12)- I have another home that I reside in for past 3.5 yrs. If I file bankrupt on the foreclosed home, can my current home be taken as well?

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

1) What state do you live in?

cfortunato :

2) What is the current market value of the home you live in?

cfortunato :

3) What is the balance owed for any mortgages for the home you are living in?

Customer:

I'm in GA

Customer:

Current market - approx $160,000; I owe $117,000

Customer:

no, current is probably $130. Sorry

cfortunato :

Thank you for your response.

cfortunato :

Are you married or single?

cfortunato :

(That was the last question.)

Customer:

single

cfortunato :

Actually, if the current market value is $130K (not $160K), then you would not lose your house if you file a Bankruptcy - whether or not you are married.

Customer:

I did not receive a cancellation of debt, should I expect that to come for next year's taxes?

cfortunato :

Not necessarily. The lender may and may not issue a 1099-C form. If the lender forgives the debt, then they will issue a 1099-C form. If they try to collect the debt, or sell it to a collection agency, then they will not issue a 1099-C.

cfortunato :

If the do decide to forgive the debt, then they will issue a 1099-C at that time. In most cases, a 1099-C is issued within one year after a foreclosure.

cfortunato :

If you file a Bankruptcy, you will not have to include the 1099-C amount as income.

Customer:

oh, okay. Thanks so much

cfortunato :

You're welcome!

cfortunato :

And please have a pleasant day!

cfortunato and 2 other Bankruptcy Law Specialists are ready to help you