At what point is it considered forgiven?

[outofcountry]

What is the name of your state? WA

I have credit card debt that has been written off by the cc company and turned over for collection. They are now threatening suit and will probably get a judgement. I have no capacity to pay it and will likely file bankruptcy. Where along the process does this debt have to be reported to the IRS and recorded as income?

 

[Snipes5]

If and when it is reported as "forgiven" you will receive a form 1099 from the credit card company. The company initiates this, not you.

It isn't something that happens automatically, not all charged-off debt is forgiven.

Snipes

 

[LdiJ]

If and when it is reported as "forgiven" you will receive a form 1099 from the credit card company. The company initiates this, not you.

It isn't something that happens automatically, not all charged-off debt is forgiven.

Snipes

If its part of a bankruptcy, then it never needs to be recognized as income, even if a form 1099C is issued.