Chapter 7-vs-Foreclosure

[Foscalo]

[TEW]

file if you can. The debt will be discharged and you will not get a 1099. are you ready to move out? Filing may stop the foreclosure for a little while. The bank will file for relief of stay and they will start back up again.
good luck keep us posted

[Foscalo]

I moved already. Looking for a reputable lawyer.

Thanks

[mmenz22779]

I am in the same boat and will file after the forclosure. i figure i dont want to wait for 4 years and see if i get 1099 and i can wipe out my credit cared debt as well.

I mean you credit is already screwed, so why not get the chance to wipe out the 9k as well.

Kinda like kill 2 birds with one stone.

[myid4u2c]

First I am not an accountant or qualified to give any tax advise. I have read the IRS publications around forgiveness of debt. An as we all know discharged debt does not count toward your income. Even if they send you a 1099 form the IRS has a form that you fill out to let them know it was discharged in BK.
In addition they do not count your income if you are insolvent. If you owe more money that your assets you can be considered insolvent.
Take a look at the IRS web page.