Filing Taxes for 2010 after Ch. 7 BK Discharge

[curiousMind]

Hi guys,

I filed for a Ch. 7 Bankruptcy and was discharged back in Oct. 2010. I am currently filing my taxes for 2010 and was wondering if there is anything I should be aware of when doing my taxes this year due to the BK?

Thanks for your help!

[outofdebt201]

I’m sure more knowledgeable people will jump in. But my understanding is that the debt that was washed away in BK isn’t taxable as income. However, if someone takes a different way out of debt and talks to the credit card companies and asks them to take 10k for your 15k of debt. Then you will need to claim that 5k as income I believe and you will need to pay taxes on that. But BK is a complete wiping away of the debt.
Hope that helps, but as always I would get a tax professional because they are going to know every angle of the issue.
Good luck

[keepsmiling]

The above does NOT apply if you are insolvent at the time of forgiveness. There is a form to fill out for this. Doesn't apply to the OP, but good to know for anyone else reading this.

[outofdebt201]

Thank you Keepsmiling, I love this forum for no other reason then all the information it has. Thanks for letting us know.