Taxable?

[nissandave]

What is the name of your state? nc

Me and my wife filed a chapter 7 and got our discharge from our debts in December, 2002. We elected to stay current on the payments of our mortgage instead of reaffirming.
In May, 2003, we abandoned our house and allowed foreclosure of the house. To my understanding, since the debt was discharged through our chapter 7 case and we did NOT reaffirm the debt, then any loss from the foreclosure sale of the house cannot be considered taxable. Can anyone confirm this for me?

 

[planner]

Even without the BK, personal losses are not deductable.

 

[nissandave]

So, I am correct in the understanding that if the payoff on the house is 45k and the sale price may only be around 30k, then the mortgage company will not send me a statement saying that I must report their loss (15k in this example) as taxable income on MY tax return?

 

[anadude]

why would anyone that's been through a bankruptcy believe anything any creditor told them in the first place?

discharged debts aren't income, period.