I'm totally disabled on SSDI; legal aid too busy to accept bankruptcy case; I've no money, no friends, family to help;

Asked about 2 years ago - Belmar, NJ

Rec'd 1099 from creditor discharging $21k card debt; will IRS tax me on unearned income? I've $7 til next payday. I can't do anything, and I'm afraid they'll prosecute me, and ask for prison time. I'm beyond panic stricken. I'm ill and a senior citizen. Will bankruptcy discharge this debt now that it's reported to IRS? Have about $33k outstanding debt; I've made no payments since '09, and have not been hounded. Options?

Attorney answers (3)

  1. 3

    Lawyers agree


    Answered . There is no "debtor's prison". Not being able to pay your debt is not a crime. You should speak with a bankruptcy attorney to determine your best course of action.

    Please be advised my answers to questions does not constitute legal advise and you should not rely on it, due to... more
  2. 3

    Lawyers agree


    Answered . You are insolvent, so send in a form 982 along with a return and the 1099. Because your only income is SSD, you are immune from garnishment. Send the IRS the form to take care of them, make sure the state taxing authority is also told of your insolvency, and relax.

  3. 3

    Lawyers agree


    Answered . Please, relax. You are OK This is NOT going to be a problem. If your only income is SSDI, then you don't owe any income tax. If you do file a tax return for the year for which you got the Form 1099, all you need to do is attach the Form 1099 and a Form 982 to your return. The form is available everywhere, including your public library.

    The IRS is not going to prosecute you. And yes, this debt the original creditor is dischargeable in bankruptcy. And since you do not really owe any taxes to the IRS, you don't have to worry about discharging the IRS in bankruptcy.

    This answer is not intended to create an attorney-client relationship and may not be relied upon as legal advice.... more

Related Topics


Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.


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.

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