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I heard mention of some sort of 1099 form that needs to be filed if a person files bankruptcy. Can someone please explain if this is something mandatory and how a person would obtain this form?
A person who files BK might receive a 1099-C, & would have to file a form to show that they were insolvent when the debt was cancelled to avoid paying income taxes on it.
Insolvency isn't the only issue. If the debt was in regards to a specific asset "basis" is also a significant factor.
In any case...you don't "get" the 1099 C, you are sent the 1099 C by a creditor. If you get one, consult with a professional tax preparer, preferibly an enrolled agent.
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