• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Insolvency

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

ddd2757

Junior Member
What is the name of your state (only U.S. law)? TEXAS.
How do you determine insolvency? I negotiated a deal with 3 creditors to pay off a bal. Mounting medical bills were killing me. I am told now that I have to submit a 1099 and pay taxes on bal that was written off. If I can prove insolvency would I not HAVE to pay those taxes? I owe more than I make on a monthly basis even prior to negotiating with creditors. So again, do I send in 1099's or do I need to prove insolvency and not send them? I am not trying to avoid my taxes just trying to be sure of my rights.
Thank YouWhat is the name of your state (only U.S. law)?
 


irsos

Member
What is the name of your state (only U.S. law)? TEXAS.
How do you determine insolvency? I negotiated a deal with 3 creditors to pay off a bal. Mounting medical bills were killing me. I am told now that I have to submit a 1099 and pay taxes on bal that was written off. If I can prove insolvency would I not HAVE to pay those taxes? I owe more than I make on a monthly basis even prior to negotiating with creditors. So again, do I send in 1099's or do I need to prove insolvency and not send them? I am not trying to avoid my taxes just trying to be sure of my rights.
Thank YouWhat is the name of your state (only U.S. law)?
You do not file a 1099 - the creditors do. Insolvency simply means that your liabilities exceed you assets.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top