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You can always pay discharged debts after bankruptcy. The discharge only prohibits collection of the debt by a creditor. To avoid reinstating the debt(s), it is a good idea not to make regular payments.
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Are you liable for debt cancelled in bankruptcy?
No you are not, If you deglared bankruptcy, that cancels your debt
Can credit card debt be erased in Tennessee bankruptcy?
A Chapter 7 BK can eliminate credit card debt.
1099 c is received and the debt is cancelled Does it still remain on your credit report?
If 1099 c is received and the debt is cancelled means that it still remains on your credit report.
Can a Repo show as receiving income to the IRS?
Yes. If the bank writes off part of your car loan as a cancelled debt, they will report it to you on Form 1099-C. Cancelled Debt is taxable as income under the Internal Revenue Code and should be reported on your tax return. Cancelled debt is not taxable as income, though, if it is cancelled through a bankruptcy proceeding our you are insolvent on the date that the debt was forgiven.
Will you get rid of credit card debt with bankruptcy?
No. If you file bankruptcy, you are basically telling the creditors that you don't have any funds to pay them. Your finances are being held by the court and the lawyers will tell the creditors that you filed bankruptcy. You are still responsible for the debt. WRONG! If you file bankruptcy and file a chapter 7, if the judge approves your appeal all your credit card debts are erased, and creditors have to stop calling and harassing you. If you file a chapter 13, you are still responsible for a certain portion of your debt, to be paid over a 5 year period, and creditors have to stop calling and harassing you.
Can a judgment be put on your credit if the debt was part of the bankruptcy?
Not if the debt was discharged in the bankruptcy. If the judgment was on the credit report before the bankruptcy was filed and/or was discharged in the bankruptcy, the entry will still remain on the CR for seven years.
If your wife included a joint car loan in her bankruptcy but you did not file bankruptcy are you still liable for that loan?
You will be responsible for the whole debt since you are the only one capable of paying the debt after your wife's bankruptcy.
If credit card puts lien on house and i file bankruptcy can i still file the credit card in the bankruptcy?
You have to, it is a debt...it is just a secured debt...by the lien on the property.
Why is the IRS billing for a car that was repossessed?
What probably happened was this: When your car was repossessed, the bank took the car to an auction. As an example, if you still owed $10,000 on the car and they sold it at auction for $5,000 then you are still liable for the remaining $5,000 on the loan. The bank probably wrote this off as a bad debt, and reported it to you as Cancelled Debt (Form 1099-C). Under the Internal Revenue Code, cancelled debt is taxed as income unless you qualify for an exception (either being in bankruptcy or being insolvent at the time the debt was forgiven).
How will filing bankruptcy affect your tax returns?
If all of the debt is cancelled, or forgiven, you may still receive a 1099-C for Cancellation of Debt from the lenders who cancelled the debt. These can sometimes take years to reach you, so it would be a good idea to check with all of the lenders to find out if they will be issuing one to you. The main reason this is so critical is the IRS receives a copy of every 1099-C that is issued. If you do not report the amount(s) from the 1099-C, you will probably get a letter from the IRS telling you that you owe additional taxes. They consider cancelled debt as income that is taxable.There is Form 982 that can essentially negate foreclosure debt, as well as other forms of cancelled debt, so no taxes are paid on it. With personal debt ie: credit cards, auto loans, etc., there is a worksheet that can be filed that tallys your assets and liabilities at the time of the bankruptcy. For instance, if you had cancelled debt of $10,000 and you had $20,000 worth of assets, but $30,000 in liabilities, you would have been Insolvent by $10,000. You can eliminate paying taxes on cancelled debt to the extent of your insolvency. In the above example, you would not have to include the $10,000 cancelled debt as income because you were insolvent by $10,000.Doesn't change any of your legal obligations (other than the debts at the court), like filing taxes, or what is due.
If a automotive lender files for bankruptcy do you still owe the debt?
Sure. Those are the funds that the bankruptcy referee distributes as fairly as possible.
What happens to your ticket when an airline files bankruptcy?
Nothing, the ticket is not a debt and would not be included in their bankruptcy. The ticket should still be good.
