No bankruptcy exemptions are to protect assets from creditors. Tax the 1099C to a tax preparer NOW to determine how to handle it. Good luck.
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I would strongly urge you to speak with and obtain guidance from a qualified CPA. Even if the student loan debt cannot be forgiven using bankruptcy, there may be another insolvency exception for you to use. For the taxable year you complete a bankruptcy, it is always wise to seek help from a CPA. As for the SSI, perhaps you can post the question on another avvo section for an answer.
This question involves how student loans are handled in bankruptcy, as well as canceled debt income. Many people are unaware that by getting a debt reduced, they may be facing increased income taxes. For example, if a debt was originally $100k and you settle for $20k (a 20% settlement), then from the IRS's perspective, you have $80000.00 in taxable income.
Student loans are difficult (in some jurisdictions, nearly impossible) to discharge in bankruptcy. To do so, you usually have to commence a special proceeding -- an adversary case -- within the bankruptcy in order to obtain a ruling from the bankruptcy judge regarding the student loans. If you did not do that, then it is unlikely that the bankruptcy exception to cancellation of debt income will help.
Fortunately, there are other exceptions to the rule that canceled debt is taxable income. If you were insolvent when the debt was canceled, you may not have tax liability. You should work with a Certified Public Accountant experienced in these matters to determine if the other exceptions apply to you.
My answer to your question is based on the facts that you provide in your question. Additional factual details about your situation could change my answer completely. The law in inherently uncertain and always subject to change.
The 1099c is a very real issue with respect to forgiveness of debt. I am not a CPA and do not give any tax advice on this matter. However, there are some issues with respect to solvency tests that even though there was a forgiveness of debt the issue of solvency, or in this case insolvency, would still not require you to pay a taxable gain. There is no presumption of tax liability with a 1099c however it should be properly addressed by a tax professional and the mere fact one has been received does not mean you have to pay tax. So if the CPA you are using thinks it is automatic in my lay opinion in the tax area I would consult another CPA to determine if you are required under the tax treatment laws to have to pay it.