Question on filing tax return after ch 7

[pantera2590]

I was was talking to a friend that I guess he paid a loan off early that a penalty was issiued on itfor the 08 tax season?? Then a few months laiter he got audited. But then right after he tells me the first story that he said it was like having a credit card and owing 10,000 on it not paying it, the the CC company called and was satisfied with 8000 for a pay off, when the audit was done he owed taxes on the 2000 differnce because it was considered income. I dont no what to beleve of all this. I BK 45,000 of CC debt does this fall in to that senaro? I just dont want to be suprised on this happening. Discharged on 8-1-2009. Thanks for any answers

[forgotten]

I was was talking to a friend that I guess he paid a loan off early that a penalty was issiued on itfor the 08 tax season?? Then a few months laiter he got audited. But then right after he tells me the first story that he said it was like having a credit card and owing 10,000 on it not paying it, the the CC company called and was satisfied with 8000 for a pay off, when the audit was done he owed taxes on the 2000 differnce because it was considered income. I dont no what to beleve of all this. I BK 45,000 of CC debt does this fall in to that senaro? I just dont want to be suprised on this happening. Discharged on 8-1-2009. Thanks for any answers

There is no tax liability for any debt discharged in bankruptcy. If you settle your debts on your own there is, which your friend found out.