I meet the qualifications and Im going to file chapter 7 this year. Can my creditors still send me a 1099-c anytime in the future (after my debts have been dishcharged) and will the IRS still make me pay for the debt we didnt pay?
You may wish to go to the IRS website & search the phrase "forgiveness of debt" which is what a 1099C represents. There is a specific exception to having to pay taxes for debts that have been eliminated through bankruptcy.
Hope this perspective helps!
Any debts discharged in a bankruptcy offset the income of a 1099.
If you have debts forgiven before bankrupty, you will need to use a different exception to gross income. Depending on your situation, you should qualify for the insolvency exclusion. You must see an attorney or CPA to make sure this does not turn into a taxable debt.
You may get lucky and do this right on your own, I recommend against it.
1845 S. Dobson Rd. Ste 201
Mesa, AZ 85202
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.
For information on cancellation of debt, 1099-A, and 1099-C, see:
There is also an IRS Publication 4681:
Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
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