tax question

[Peevee]

I was discharged from a chapter 13 in aug 2008. A lady my wife works with told her you have to pay taxes on the amount you discharged on.
This is a new one on me. Have you guys ever heard of this? Our case was a 51% payback.
I look forward to hearing your responses. Thanks

[StartingOver08]

Not for bankruptcy filings, the trustee files a tax return on your case too. What her co-worker is probably referring to is the 1099-C that is issued when you settle debt, not when you file BK. (She may not know the difference)

[Flamingo]

Filing bankruptcy protects you from paying taxes on the discharged debt. If you negotiated and settled on your debt with the creditors and a portion of the debt was "forgiven" by the creditor, the "forgiven" amount is taxable income to you in the yeaer forgiven and you will receive a 1099 to include the amount in your taxes for that year.