Christopher M. Mcavoy's Guides

Christopher M. Mcavoy
Taylor Bankruptcy Attorney.
Contributor Level 11

Debt Forgiveness, Taxes, and the 1099c

Written by attorney Christopher Mcavoy, over 1 year ago.

Bankruptcy can avoid taxes on debt forgiveness and avoid the impact of a 1099c. Let's say you are working with a debt negotiator or a collection agency and work out a favorable deal. You negotiate a debt from $25,000 down to $2,500 (which I just did for a client recently.) So...