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If that loan modification was NOT a part of your chapter 7 bankruptcy procedure - the creditor may not use "A—Bankruptcy" as the reason on form 1099C...
Based on your information - you entered into a loan modification AFTER the bankruptcy was finalized.
So that reporting is correct and you may not use the bankruptcy as the exclusion reason.If that discharge was related to your primary residence - you may use "Discharge of qualified principal residence indebtedness" as the exclusion reason.
But if that is not your primary residence - you may verify if you qualify for the insolvency exemption.
Let me know if you need any help with reporting.
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