Financial Advice

I Filed Bankruptcy But Still Got 1099-C Forms So What Do I Do Now?

Question:

Dear Steve,

Had a ch 7 bankruptcy filed 12/14 and discharged 4/15. there were multiple properties (different banks) that were included in the bankruptcy. I have received multiple 1099-c with codes showing “by agreement” and another that says “foreclosure agreement”. however we were never foreclosed and the properties were included in the bankruptcy and discharged.

NOW, they are saying on these forms that we are having pay the tax on the discharged debt??? How can this be when the US government discharged all the debt??

HOW do we file taxes with these 1099-c forms with incorrect codes? we have yet to file 2015 taxes as we have been fighting with the bank to reissue the tax forms…

Is there ANYTHING we can do?

Michael

Answer:

Dear Michael,

No worries. Just file a form 982 for the year your bankruptcy was discharged.

Your tax professional who is assisting you with your taxes should know how to do this.

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

If you have a credit or debt question you’d like to ask, just click here and ask away.

This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

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