Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.
1) What state do you live in?
2) What is the current market value of the home you live in?
3) What is the balance owed for any mortgages for the home you are living in?
I'm in GA
Current market - approx $160,000; I owe $117,000
no, current is probably $130. Sorry
Thank you for your response.
Are you married or single?
(That was the last question.)
Actually, if the current market value is $130K (not $160K), then you would not lose your house if you file a Bankruptcy - whether or not you are married.
I did not receive a cancellation of debt, should I expect that to come for next year's taxes?
Not necessarily. The lender may and may not issue a 1099-C form. If the lender forgives the debt, then they will issue a 1099-C form. If they try to collect the debt, or sell it to a collection agency, then they will not issue a 1099-C.
If the do decide to forgive the debt, then they will issue a 1099-C at that time. In most cases, a 1099-C is issued within one year after a foreclosure.
If you file a Bankruptcy, you will not have to include the 1099-C amount as income.
oh, okay. Thanks so much
And please have a pleasant day!