My Old Employers Pension plan which had around $ 20 , 000 , this old employer filed for bankruptcy in Nov 2011 so they cancelled the option of lumpsum payouts so I couldn't cash out that $ 20 , 000… Only option that was available for us is monthly payments option of $ 100 . 00…I opted for monthly payment option… But everything was kept on hold since bankruptcy court has to decide on all the payments / plans etc…In July 2012 I settled my Debts… Since this $ 20 , 000 was not available for me and during the period I got my debts settled and it was only after 6 months in December 2012 bankruptcy court approved lump sum payments and terminated the pension plan and it became available for us . So should I include this $ 20 , 000 in my assets for INSOLVENCY Calculations ?
You need, of course, to retain a bankruptcy lawyer for this. However, my guess is that you must include your interest in the retirement plan on your bankruptcy schedule.
Tax debt does get listed on the bankruptcy schedules, usually under schedule E. However, Filing bankruptcy within a certain timeframe before or after the debts are forgiven can help avoid debt forgiveness tax debt. Check with a tax professional, like H&R Block and ask if they can eliminate the 1099 tax debt by quickly filing bankruptcy.