In ch 13 since nov 2006. Got a 1099-C from american express bank friday for canceled debt. Why?
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You can ignore that 1099 for cancelled debt. You don't owe any taxes on that difference since you are in an active Ch 13 bankruptcy and the difference will be cancelled out once your plan is completed. That's one of the large benefits of filing bankruptcy - no taxes owed on the discharged debt!
Forward a copy of that AmEx notice on to your Ch 13 lawyer so it can be a part of your bk case file just in case.I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go -
If American Express was included in your Chapter 13 filing, you should not have received a 1099-C. If it was included in your filing, you are not responsible for any taxes on the amount included in your filing; bring that 1099-C to the attention of your attorney.Originally posted by gunsmoke View Post_________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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