If you get all your debts discharged through bankruptcy, what happens when you file your income taxes for the year of discharge? Do you have to claim all the money as income or what?? Does each creditor send you a 1099 form for the amounts discharged?? What would be the tax implications if any?
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Filed Chapter 7: 8/13/08
341 Meeting: 9/15/08
Last Day To File Objections: 11/14/08
Discharged & Closed: 11/18/08
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Nope. The debts are discharged, not forgiven. You file your taxes as you usually would. Nothing else happens.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation. -
Correct, you don't need to do anything special with your taxes.
In fact, what happens behind the scenes is the Trustee files a Tax Return on behalf of the Bankruptcy Estate.Comment
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