0
When filing chapter 7 does the IRS tax your forgiven debt as income?
Wiki User
∙ 16y ago
There are separate calculations, but normally, the otherwise taxable cancellation of debt income (COI) doesn't happen if it was created as part of the BK process.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
Is a 1099 a considered debt forgiven?
If a debt is "forgiven," it is income to the debtor, and a 1099 is issued by the mortgagee or the creditor. You may not have to pay it, even if you don't file bankruptcy, if the debt was a mortgage on your residence.
On a repossion can the IRS collect for the bank?
No. But any debt that is forgiven is taxable as income.
What could possibly be forgiven under chapter 7 bankruptcy?
credit card debt
When filing chapter 13 should all debt be included?
when filing any bankruptcy you must disclose ALL debts.
What are the advantages of filing for bankruptcy?
The advantages of filing for bankruptcy are different depending on which chapter bankruptcy is filed. Chapter 13 is more for home foreclosure and auto loans, it's advantages allow the person in debt to pay their debt back over a longer period of time and keep the things they have worked very hard for. Chapter 7 advantages are that the person in debt can make payments for less than a year and be debt free and most if not all of the unsecured debt owed can be dropped.
What if your income increases after filing a chapter 13 bankruptcy?
Chapter 13 is more of a repayment plan than a debt wipeout. Because of that, if there is a change in your financial circumstances after filing for bankruptcy then the court needs to be aware of it.
Is a 1099 a considered debt forgiven?
If a debt is "forgiven," it is income to the debtor, and a 1099 is issued by the mortgagee or the creditor. You may not have to pay it, even if you don't file bankruptcy, if the debt was a mortgage on your residence.
You are getting married to a man who is filing chapter 13 - how will your wages be affected?
Once you are married, your income will be combined with his as well as your debt. This becomes a joint effort and your income will be subjected to the bankruptcy as well.
On a repossion can the IRS collect for the bank?
No. But any debt that is forgiven is taxable as income.
What could possibly be forgiven under chapter 7 bankruptcy?
credit card debt
You have huge debt medium income do not want chapter 13 will divorce let us file chapter 7?
Divorce will not affect filing chapter 7. If the divorce is final, you will have to file separate chapter 7s. If the divorce is not final, or has not happened, you can file a joint chapter 7.
If would have a corporate credit card debt of $20,000.00 and was under stress, could I file chapter 7 and be forgiven of that debt?
It would depends entirely on your financial situation, there is not enough information to determine. If you were to file chapter 7, the that credit card would be forgiven.
What were the chapter 7 bankruptcy laws in 2001?
Bankruptcy laws changed dramatically in 2005 and make it considerably harder for people to file chapter 7 bankruptcy, those people who do not qualify for chapter 7 are left with the option of chapter 7. Some of the major changes with chapter 7 are:In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income.You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is.
What are th steps to filing chapter 11?
In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income. You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is. If you pass the tests then the actual process of filing for bankruptcy will involve filing a two-page bankruptcy petition in which you identify your assets/property/debts etc. You will also meet with a trustee of the bankruptcy court who will go through your papers and conduct a creditors meeting. The process will take about 4-6 months.
Can you file tax debt on a chapter 7 bankruptcy State and federal?
No on state taxes, yes on federal income taxes if the filing date or the date on which the IRS determined the tax due is more than 3 years prior to filing.
When filing chapter 13 should all debt be included?
when filing any bankruptcy you must disclose ALL debts.
Mortgage lates after filing chapter 7 Can a mortgage company report lates after filing of a chapter 7 and before a discharge?
Yes. That reporting to a credit agency of an item of fact, is not an attempt to collect the debt. Your not expecting you mortgage debt to be discharged are you?
