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My husband and I went through a Chapter 7 Bankruptcy which…

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My husband and I went...
My husband and I went through a Chapter 7 Bankruptcy which was final in January of 2006. Yesterday we received a 1099 - C from the bank involved showing a cancellation of debt as 12/31/2009 with no interest and a debt description of Business Re and 3 loan numbers, The first loan was for graound we bought, the second for buying the business and the third was a loan for repairs we had to have done on the business which used our farm ground & house for collateral. There is not a fair market value listed and the bankruptcy is checked. Do we have to claim all this as income?
Alice
Submitted: 8 years ago.Category: Bankruptcy Law
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Answered in 16 minutes by:
1/12/2010
Bankruptcy Lawyer: Maverick, Attorney replied 8 years ago
Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6,667
Experience: 20 years of professional experience
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If all the debt that is listed on the 1099-C forms was discharged during your bankruptcy you do not need to report it as income to the IRS. You may want to attach a note to your tax return informing the IRS of that fact.

Please click "Accept" so that I can get credit for this answer. We can continue our conversation after that at no additional charge.

Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6,667
Experience: 20 years of professional experience
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Customer reply replied 8 years ago
I usually e-file. Should I not this year so that I can send an explanation?
Bankruptcy Lawyer: Maverick, Attorney replied 8 years ago
I had the same situation and I e filed and did not send a note. Everything was fine. You can still e-file and if a question arises, you can let them know by a letter at that time.
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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).

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