I recently settled on a home modification in 8 / 2012 . A 1099 - c for the amount of approx ~ $ 43K was issued . When plugged in to my tax returns for 2012 , I will be held responsible for about ~ $ 12 in tax liability . The cancellation of debt was issued for a combined 1st mortgage modification & a 2nd mortgage pay - off for lesser amount . I have initiated a dispute of the amount , because they don't correlate with my calculations . I do expect a poor outcome , and will succumb to this huge IRS bill . I may attempt to fill out form 982 & claim insolvency . But my main questions is : in the current year of 2013 , I will be incurring a short sale & suspect that BOA will submit a 10-k of approx ~ $ 10-k , which constitutes a tax liability of $ 60S . How do I prepare for that hit or avoid paying ?
Chapter 13 bankruptcy is called a wage earner's plan because it lets people who earn an income repay their debt (all or some) over time and keep their property.
There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.
by attorney David Slepkow
Does Rhode Island have a statute direcly pertianing to Marital Debt? Rhode Island has no specific statute related directly to assigning Marital Debt... more
by attorney Marie White