Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.
1) What state do you live in?
2) What is the current market value of the home you live in?
3) What is the balance owed for any mortgages for the home you are living in?
I'm in GA
Current market - approx $160,000; I owe $117,000
no, current is probably $130. Sorry
Thank you for your response.
Are you married or single?
(That was the last question.)
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.
I did not receive a cancellation of debt, should I expect that to come for next year's taxes?
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.
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.
If you file a Bankruptcy, you will not have to include the 1099-C amount as income.
oh, okay. Thanks so much
And please have a pleasant day!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).