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Hello again,If you mean that this PayPal debt was listed as a consumer debt, which can be discharged ad the completion of your Ch. 13 plan, then I don't see that it matters to your tax argument, or to the bankruptcy. You could sue PayPal in bankruptcy court, allege and prove that its debt is not a debt, but a theft of PayPal property by a third party, and if you win, then you could modify your Ch 13 plan and remove the debt entirely. This may not be worth the hassle, unless PayPal owes you enough money that it has setoff from your account, to justify your suing for conversion and for punitive damages. In other words, it may be better to do nothing, just to get out from under the debt without spending any more dough on attorney's fees and costs of suit. And, by discharging the debt in bankruptcy, you also discharge any tax liability for that debt -- so that's something else to consider -- because it means you don't have to report the 1099-K income as income, since it's being cancelled in bankruptcy. Anyway, that's the broad brush. Hope this helps. Hope this helps.
The PayPal "debt" is post-petition
Sorry for my confusion. The "debt" arose after I filed CH 13, but I filed an amended plan and included it in the amendment. My understanding has been that all this provided me was that the "creditor" could not pursue collection while I was in Ch 13. Is that not correct ? Thanks for your patience.
One final question: Am I correct in assuming that I convert to a Ch 7 and dispense with the matter altogether ?