cancellation of debt and 1099-c from irs

[elvis99]

What is the name of your state? az, iam in the
process of filing bk7 and i received a copy of
a 1099-c form from my credit union for cancellation of debt for my line of credit
and credit card that i havent been able to pay on.
is it true that i will be taxed on these and
have to pay it as income. i also heard if your
debt is higher than you assets you are ok and are not taxed as income. any info appreciated thanks you so much

 

[Ladynred]

If you are insolvent at the time the debt was 'cancelled' then , no, you do NOT have to claim the amount on your taxes. You need to get form 982 for insolvency.