mellymel

Thanks again TomnTex. Denita and WhoCares1000 thank you for your input. My wife and I feel much better now.

Thanks TomnTex. Im feeling a little better now but if I can get a few more people to agree with what you said then ill feel a hundred times better.

Original loan was $340,000 when I lived in it. I moved to California and still made payments to the loan. In August of 2009 I filed for Chapter 7 in California. That is when my lawyer said to stop making payments on the property cause you are surrendering the property. The loan stopped at $300,000 and not a single penny was made towards the loan. In May of 2010 we were considered discharged from the loan. We didn't have to worry about the lender harrasing us about the loan. We were not liable to pay. Just recently in February of 2012 this evil 1099-c came in. We looked at it and tried to figure out why box #6 "bankruptcy" said "no" and box 5 said what it said. I called the lender and they told me exactlywhat I wrote down in the previous post. Im wondering if form 982 can cancel this debt or will I have to claim it as income? I didn't reaffirm the property. I wiped my hands clean and walked away filing Chap 7

Thanks for the reply WhoCares1000. 1. Courts discharged us from property in May of 2010 Chap. 7 " Loan was $300,000 left to pay by us when discharged. 2. Lender claims that even if we surrendered the property through BK Chap. 7 the property was still ours and under our name. 3. Lender claims that since the property is still under our name ( we still own the home ) the property is going through a foreclosure process and didn't finally sell till 10/2011. (I'm guessing that lender was doing the foreclosure proceedings) 4. Now we received a 1099-c for the amount of $300,000. Again just a recap 1099-c received Feb.2012 (Box.#5) states "we (borrower) was liable for repayment" answer marked "yes" (Box.#6) states "Bankruptcy" answer marked by lender as "no"

My wife and I filed for Chap 7 in May of 2010 and had a property worth $300,000 discharged “surrendered” .Well its 2012 and we received frightening 1099-c from the lender. Under (box.#5) “Was borrower liable for repayment of debt” and the answer marked by the lender was “yes”and for (box #6) of the 1099-c “Bankruptcy” was noted by the lender as “No” . I have all my paperwork from the courts stating we are discharged from this property. My question is will I have to file this $300,000 as income since the IRS received the same form from the lender stating that it wasn't part of the bankruptcy or can I file form 982 and cancel this debt since I have the discharge papers from the courts stating "this property was surrendered"? Please help. Stressed and confused.