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1099-c question for insolvency

bkidic

Junior Member
#1
What is the name of your state (only U.S. law)? IL

Anyone with any knowledge or experience of having debt forgiven and then getting 1099-c(s)? Ideally you match my situation: married; i filed for bk; spouse did not , but instead did debt negotiation and recvd some 1099-C s.
we want to ideally claim insolvency for her, but i am not sure how to do this when two people jointly own the major asset, our home. s/ this be listed at 50 pct of the asset value? how does the irs determine value for homes? i know from bk there is a certain formula that deducts selling costs to arrive at a net value.

. so my question is when we tally her assets and liabilities, do we say she has 50 pct of the home and 50 pct of the mortgage? Or can you reasonably parse a mortgage. While I can see that if the house were sold, she cd get 50 pct, 50 pct of a mortgage cannot exist. I cannot send 50 pct of the mortgage and expect it to count as a whole payment, eg.

so if anoyne has ever done this -- married filing jt and onbe spouse did 1099-c w/ jt home ownership, I 'd be curious what you did
 


Zigner

Senior Member
#2
In your prior threads, you said that you would be filing with the assistance of an attorney. These questions are best directed to your attorney. If you chose to not utilize an attorney for your filing, now would be an excellent time to remedy that mistake.
 

LdiJ

Senior Member
#3
What is the name of your state (only U.S. law)? IL

Anyone with any knowledge or experience of having debt forgiven and then getting 1099-c(s)? Ideally you match my situation: married; i filed for bk; spouse did not , but instead did debt negotiation and recvd some 1099-C s.
we want to ideally claim insolvency for her, but i am not sure how to do this when two people jointly own the major asset, our home. s/ this be listed at 50 pct of the asset value? how does the irs determine value for homes? i know from bk there is a certain formula that deducts selling costs to arrive at a net value.

. so my question is when we tally her assets and liabilities, do we say she has 50 pct of the home and 50 pct of the mortgage? Or can you reasonably parse a mortgage. While I can see that if the house were sold, she cd get 50 pct, 50 pct of a mortgage cannot exist. I cannot send 50 pct of the mortgage and expect it to count as a whole payment, eg.

so if anoyne has ever done this -- married filing jt and onbe spouse did 1099-c w/ jt home ownership, I 'd be curious what you did
Are you planning on having her file separately?
 

LdiJ

Senior Member
#5
That strategy is a perfect thing for him to discuss with his attorney ;)
I do not know how much his bankruptcy attorney can help with this. Its a tax issue not a bankruptcy issue. I have not known bankruptcy attorneys to have much tax knowledge. Plus, since he said his wife did not participate in the bankruptcy, but rather negotiated her debt with the lenders (hence the 1099-Cs) therefore I am not sure that the bankruptcy attorney would want to help at all.