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1099, COD, and Bankruptcy

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cgdm1168

Junior Member
What is the name of your state? AL

I filled a joint Ch 7 Bankruptcy in May 2005, and was disharged in Sept 2005. Included in the bankruptcy was our personal home, having a mortgage of 113K., The property was turned surrendered to the mortgage holder at the time of the bankruptcy hearing through our bankruptcy attorney. After filing and receiving my refund on our 2006 tax returns, I received a 1099 for tax year 2006, from the mortgage lender showing an amount of 33k. What actions should I take?

Should I file an amended return for 2006, and mm I liable for taxes as income on the the 1099?.

Thanks,
 


LdiJ

Senior Member
What is the name of your state? AL

I filled a joint Ch 7 Bankruptcy in May 2005, and was disharged in Sept 2005. Included in the bankruptcy was our personal home, having a mortgage of 113K., The property was turned surrendered to the mortgage holder at the time of the bankruptcy hearing through our bankruptcy attorney. After filing and receiving my refund on our 2006 tax returns, I received a 1099 for tax year 2006, from the mortgage lender showing an amount of 33k. What actions should I take?

Should I file an amended return for 2006, and mm I liable for taxes as income on the the 1099?.

Thanks,
Take no action at the moment. It is not taxable income to you due to your bankruptcy. However, the IRS will likely eventually ask you about the 1099, therefore keep your bankruptcy paperwork in a safe place, so that when that happens you can provide the necessary info to the IRS.
 

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