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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38910
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Hi.. Just received 2 1099-As in the mail for 2009 taxes. 1.

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Hi.. Just received 2 1099-A's in the mail for 2009 taxes. 1. is a rental property my former wife got in the divorce but my name is XXXXX XXXXX to it. It has a outstanding balance of $303,000 and a fair market value of $177,000 with box #5 that says yes for personally liable. 2. is a car that was in my business name that has a outstanding balance of $46,230 and a fair market value of $27,500. Box #5 says yes

1. There's a really good chance i'm going to have to file for bankruptcy since i have other properties that are headed to foreclosure and also have high credit card debt
2. If you were in this situation what would be the best path to take from here? your help would be greatly appreciated

Since you're liable for the unpaid balances and the cancellation of debt income tax as well, then the only question is Chapter 7 vs. 13. If you don't have income at the moment, then 13 is out and that leaves you with 7.


Cut and dry, unless you have more facts about your circumstances you would like to share.


For a bankruptcy lawyer referral, see:


Hope this helps.


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Customer: replied 7 years ago.
the last thing would be if i file for bankruptcy would these 2009 1099-a's be included in the bankruptcy even though i would claim bankruptcy now in 2010.

A 1099-A does not result in cancellation of debt income. For that, the lender must send a 1099-C, which shows that the lender has actually cancelled the debt. So, at this point, you could still file bankruptcy and discharge the cancellation of debt income.

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