IRS after discharge

[Starchild 1066]

How does the IRS treat a no assets discharge?

[iggie97]

no effect on IRS....file as normal...no effect on taxes

[AAAArt]

Somewhere else on this forum I read that some creditors may send you a 1099 for debts charged off. If anyone does do this to you this year or next, it will look like extra income which you have to declare. The advice here was not to worry about it, just file a copy of your BK with the 1099 and it is not counted as income by the IRS. It is merely a way for the companies to adjust their accounting. I'm not sure how that might work with charge-offs. but with BK's, you're home free and have your "fresh start" provided by the constitution. Art

[StaciMM]

That applies to settled debts (where the creditor forgives part of a balance) not to BK.

Somewhere else on this forum I read that some creditors may send you a 1099 for debts charged off. If anyone does do this to you this year or next, it will look like extra income which you have to declare. The advice here was not to worry about it, just file a copy of your BK with the 1099 and it is not counted as income by the IRS. It is merely a way for the companies to adjust their accounting. I'm not sure how that might work with charge-offs. but with BK's, you're home free and have your "fresh start" provided by the constitution. Art