My parents, took over a business, then the person filed bankruptcy(2010). My father just received a 1099-C for a discharged debt

Asked over 3 years ago - Richmond, VA

with Capital One. They have never had an account w/ this Company. They have called the company and spoke with different people. No one can seeme to figure out what it's from. It's over 4,000, that they say my father has to claim as income. I know the previous business owner had many credit cards, they ran out to the max while filling the Bankruptcy. Could this write off be from them?

Attorney answers (1)

  1. Theodore John Koban

    Contributor Level 13

    Answered . Unless the credit was extended to a businsess entity which you purchased (i.e., a corporation or an LLC) I suspect the debt is, in all likelihood, personal to the seller. It is possible that the debts were joint between the seller and his business entity. Your post has insufficient information to answer your question with certainty. I suggest you speak to the attorney who represented you with the acquisition. Presumably you had been provided with financial information about the business before you purchased it.

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