How Should Lender Have Filled Out 1099-A?

[DecayingAngel]

Hello, I notice there is a wealth of excellent posts here for people who are thinking about, going through, or have survived bankruptcy. So I was wondering if someone could help me with a question.

Our Chapter 7 No Asset bankruptcy was discharged in 2003. We also surrendered the house. The only creditor to send us a 1099-A was the second mortgage holder, who listed something like $36,000 and checked off the box that we are personally responsible for this debt. It was my understanding that in a no asset case, the debtor is NOT responsible and that the lender was not supposed to check that box off.

This lender does not respond to any questions, return calls etc.

Can anyone help clear this up for me? I would be most appreciative of any assistance.

**I am sorry, I think this is in the wrong forum. After I registered for some reason I was directed to this area and didn't notice it said "Before the Discharge". I truly apologize.

[HHM]

You are correct in that you should not be getting any 1099's as a result of your BK. However, I don't really have any advice about what you should do.

I suppose, if I were you, I would make a copy of the 1099, then mail that copy along with your Bankruptcy Petition (the first 2 pages), your list of secured and unsecured creditors, and your discharge order to the mortgage company with a letter explaining the mistake.

[keepmine]

I'd suggest you send a copy of that to the IRS as well since, the lender will have already filed a copy of the 100A with the IRS.

[DecayingAngel]

Thanks for the Replies

I totally agree and they will probably get in big trouble when the IRS sees what they put. Since this will involve having our taxes done and it will become an issue, the IRS will already have their copy of this.

We have sued the lender. This happened before we retained legal counsel. Lawyer said they would work on it but in the end they did nothing.

One woman I know got a similar one and took it to the IRS office. They were VERY interested. After six months, the entire trade line of this lender (another one) was entirely wiped off of her credit reports, courtesy of the IRS.

And this is not the only violation from the lender. They would not reply to anyone until they got to court, and then resorted to lies and accusing us of all kinds of things. Already they have (deliberately, IMO) not complied with two separate orders from the court. Anytime they are caught doing something wrong, they respond with "it's a clerical error". Yeah, sure, blame the little guy.