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Form 1099 and Bankruptcy -- PLEASE HELP


mom2004
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My bankruptcy papers were filed October 2000. I had two mobiles homes that were included in the bankruptcy. I received a 1099 form for one repo'd mobile home saying it was repossessed Sept. 2000. (This house was listed as discharge chapter 7/Repossession write-off on one credit report and charge off on another credit report stating writeoff but no mention of bankruptcy. I finally got that straightened out to show it as included in bankruptcy.) I received a 1099 on the other home in October 2001 which was listed as discharged and zero balance on my credit report.

My question is the 1099 forms. Were these to be filed with the IRS? Because I didn't worry about them because my lawyer said that filing the bankruptcy would protect me from having the loan companies come after me for the negative balanced owed on the houses. But now I have started worrying because I read on another discussion board about mobile homes that if the loan company files a 1099 you are liable for taxes on that money. PLEASE help. I haven't gotten any sleep since reading about the 1099 forms. My lawyer is no longer in Georgia so I cannot ask him. Thank you for any advice you can give me.

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When I filed bk I also got 1099 forms on two properties. If you get those you HAVE TO file that with your taxes because that is the same form the IRS gets and it will draw a red flag if you don't file them. On the other hand the good news is that because it was in BK and then discharged you are not responsible for the debt. It's income on your tax returns and then it's written off on the same tax returns. Don't worry.

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When I filed bk I also got 1099 forms on two properties. If you get those you HAVE TO file that with your taxes because that is the same form the IRS gets and it will draw a red flag if you don't file them. On the other hand the good news is that because it was in BK and then discharged you are not responsible for the debt. It's income on your tax returns and then it's written off on the same tax returns. Don't worry.

So, you are saying since these 1099 forms are from 2000 and 2001, I don't have to worry about filing them even now? I didn't file either of these forms on my taxes because I thought filing bankruptcy took care of everything and any negative balance owed to loan company. Now, Iam WORRYING again. I always file head of household. If there was a problem, IRS should have contacted me long ago. As I said, both accounts were included in the bankruptcy and noted on my credit reports.

Thank you for sharing your experience.

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If you are insolvent when the debt was written off, then you do NOT have to claim those 1099's as income. The bankruptcy OFFICIALLY says you were insolvent and those debts wiped out. You need to file form 982 to show the insolvency and cancel out those 1099's.

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If you are insolvent when the debt was written off, then you do NOT have to claim those 1099's as income. The bankruptcy OFFICIALLY says you were insolvent and those debts wiped out. You need to file form 982 to show the insolvency and cancel out those 1099's.

I spoke to an H&R Block tax representative this afternoon and was informed that I was exempt from filing the 1099 forms because the debts were included in the bankruptcy. She also advised me to hold on to the forms and bankruptcy papers in case IRS had any questions in the future. She also said that more and more financial institutions are sending out these 1099's these days as a way to protect themselves (I guess to write off their losses.)

Thanks to everyone who responded. I have learned a lot from this board.

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