We filed our 2009 tax return at the end of January, as I was waiting for any 1099-C's from two creditors who we settled with last year (before deciding on filing BK). We ended up with a refund of about $1,000 from federal and will have to pay state about $200. We received our refund from federal a week later.
Now in the second week of February, we receive a 1099-C from one of the creditors, after we have already filed and received the refund. I went into Turbo Tax and input the 1099-C, as if we were revising our tax return. Now of course the numbers have changed, to us owing federal about $800 and still owing state. I have put the money from the refund in a safe place, but I'm worried that the trustee will want the refund.
Has anyone been in this situation? I have given our lawyers office the filed tax return and a copy of the 1099-C with an explanation, but no word yet. I'm just curious if you're able to disregard the 1099-C, or if I should revise my tax returns immediately and send them in. We settled with the creditors in September through November, so I'm not sure if trustee would even be interested in pulling those settlement payments. At this time, my husband was totally against filing for BK- CH 7.
I'm thinking that would be best case scenario, so that the 1099-C would no longer be valid???????
Thanks anyone for your input.
Now in the second week of February, we receive a 1099-C from one of the creditors, after we have already filed and received the refund. I went into Turbo Tax and input the 1099-C, as if we were revising our tax return. Now of course the numbers have changed, to us owing federal about $800 and still owing state. I have put the money from the refund in a safe place, but I'm worried that the trustee will want the refund.
Has anyone been in this situation? I have given our lawyers office the filed tax return and a copy of the 1099-C with an explanation, but no word yet. I'm just curious if you're able to disregard the 1099-C, or if I should revise my tax returns immediately and send them in. We settled with the creditors in September through November, so I'm not sure if trustee would even be interested in pulling those settlement payments. At this time, my husband was totally against filing for BK- CH 7.
I'm thinking that would be best case scenario, so that the 1099-C would no longer be valid???????
Thanks anyone for your input.
