In November of 2012, I completed a bankruptcy in the state of Ohio, where I was living at the time.
One of the items included as an asset in my bankruptcy was my home. I had purchased this home originally as an investment property a few years before. Since it was my primary residence at the time of the bankruptcy, I kept it.
At the end of 2012, I received a 1099C from my lender, saying that I had the debt discharged in bankruptcy. However, I am still paying on this debt. I have contacted the lender twice about this, and they assure me that I was supposed to receive a 1099C, even if I still have the property and am still paying the debt to them in a timely manner (and have no intentions of giving up the property).
Is this correct, that the 1099C was issued in a proper manner? And if so, should I file an amended return
and form 932 with the IRS to demonstrate why I shouldn't be paying taxes
on this amount of money that was supposedly "forgiven"? (If it turns out that the 1099C was incorrectly issued, what should I do about it, given that my lender insists the 1099C is right and seems to not want to do anything about it?)