It appears that the loan was forgiven. If the loan was included in your bankruptcy, you will not have to pay taxes on cancelled debt. There is an exception for bankruptcies under the tax code.
If the loan was forgiven BEFORE you filed your bankruptcy, you might have a "debt forgiveness tax" issue. However, you should have received a 1099 in early 2012 if it was forgiven in 2011. Also, if it was forgiven "pre-filing," you may fall within the insolvency exception (see IRS form 982) or consult a "good" tax professional.
By reason of Full conveyance by HELOC, your loan is paid off, recommend talking to CPA regarding dealing with the issue of 1099 form from creditor . It could very well be exempted from taxation by reason of chapter 7 Bk-Discharge.
Madhu Kalra Kalra Law Firm 23720 Arlington Avenue, Ste 5 Torrance, Ca 90501 (310) 325-9012 http://www.thekalrafirm.com