Included my house in Ch 7. If I stay and pay and if I'm successful in negotiating to remove the lien with my second, will I get a 1099c and have to pay tax on that amount? I'm hoping since it was discharged I won't have to. Thanks in advance.
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After reading other similar posts on here it doesn't sound like I would pay taxes. But even if I did, it's still better than the whole debt. -
You would not pay taxes on the discharged debt. If a 1099-C is issued, you only need to have your tax preparer (or accountant) complete Form 982 to show that it was discharged in a bankruptcy.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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