Spouse filing 7 - urgent!!!!!!!

[nanademi]

What is the name of your state? Texas

Hubby sole proprietor who is having to file 7 due to unpaid accounts receivables. Atty says we don't have to file joint.
Couple of questions:
- we have two trucks, both in his name, one with 0 equity, the other with more than the 2,750 allowed. should we put one in my name? Is that allowed? We don't plan to include them in the bankruptcy, and we need both vehicles. if the trustee says too bad, so sad, you HAVE to include them, will they take into account that the equity is 'half mine'? (comm. property state)
- we have been told by our bookkeeper that forgiven debt is considered taxable income; our atty says no. who's right?
any info anyone could share would really help.

 

[monnickasmommy]

we have been told by our bookkeeper that forgiven debt is considered taxable income; our atty says no. who's right

Your attorney - You will have to file out a 982 form take alook at it on the irs web site- it will keep it out of your income-
Just had to do one for a house we had for 68,000- because it was in the bK

 

[Ladynred]

In a bankruptcy situation, its not likely that any of the debt you have discharged will be reportable as income. Your bookeeper is wrong in this case. If it were an 'ordinary' 1099-C situation (cancellation of debt), then it still would not have to be reported as income if you can prove insolvency - and a bankruptcy IS insolvency !!

As for the vehicles, you might want to take a look at this TX lawyers page on exemptions:

http://www.geocities.com/markddunn/exemptions-table.html