Deborah Aultman Posted June 17, 2018 Report Share Posted June 17, 2018 received an 1099-c on a debt that was involved in a bankruptcy case and later repossessed.All of this taking place from 2009 to 2011. I am just receiving the statement from IRS saying that I owe owe 6000 $ in taxes and only allowing one moth to pay in full. I desperately need advice. Quote Link to comment Share on other sites More sharing options...
willingtocope Posted June 17, 2018 Report Share Posted June 17, 2018 Was the car included in the bankruptcy? Did you "reaffirm" the debt and continue to make payments? Quote Link to comment Share on other sites More sharing options...
Deborah Aultman Posted June 17, 2018 Author Report Share Posted June 17, 2018 was a mobile home/demand letter 12-16-2003/letter stating leave debitor alone 1-20-2004 Quote Link to comment Share on other sites More sharing options...
willingtocope Posted June 17, 2018 Report Share Posted June 17, 2018 If the mobile home was IIB and you didn't reaffirm it, you don't owe taxes on it. Talk to your BK lawyer for the proper forms to give the IRS. Quote Link to comment Share on other sites More sharing options...
Deborah Aultman Posted June 17, 2018 Author Report Share Posted June 17, 2018 heres the details current fiance received letter last week about 1099. when going through divorce wife continued to stay in trailer on not paying payment and not telling him he found out when contacted at 6 mths behind after all said part of the loan was in bankruptcy for 5 yrs ending 2009. then later the trailer was reposed due to harassment from lender. last week was first learning about ditech a(same wife verbal counsels child support unknowingly only judge can do that) so his overall debit is so much greater than asset. n ow irs say 1 month to pay total from irs changes amended was 29, 303 leaving $6,830 in owed taxes. when contacted about repossession first time he filed bankruptcy to keep trailer but continued to be harnessed about payments Quote Link to comment Share on other sites More sharing options...
Deborah Aultman Posted June 17, 2018 Author Report Share Posted June 17, 2018 what is IIB Quote Link to comment Share on other sites More sharing options...
willingtocope Posted June 17, 2018 Report Share Posted June 17, 2018 IIB = included in bankruptcy. If he filed BK, and listed trailer in the paperwork, he doesn't owe taxes. See a lawyer. Quote Link to comment Share on other sites More sharing options...
Deborah Aultman Posted June 17, 2018 Author Report Share Posted June 17, 2018 it was included in the bankruptcy forgive me for I have never dealt with a bankruptcy or 1099. somehow when he came out of bankruptcy he was still paying on trailer yet still being harassed being young and hot headed he told them to come get it because of lack of understanding after 10 yrs of payments he owed more on it than he originally gave for it . it also was during the time of predator loans Quote Link to comment Share on other sites More sharing options...
willingtocope Posted June 17, 2018 Report Share Posted June 17, 2018 Some debts "pass through" a BK...which means they're not discharged and you still owe them. It used to be that if you continued to make payments, it was understood that the debt passed thru. The laws changed around 2004-2006. I still suggest you talk to a lawyer. This specific case could be complicated. Quote Link to comment Share on other sites More sharing options...
Deborah Aultman Posted June 17, 2018 Author Report Share Posted June 17, 2018 thank you the papers stat that total secured was 48,267.58 and principal paid was 32345.20 . was also wondering about being insolvent he doesnt have much asset to speak of Quote Link to comment Share on other sites More sharing options...
Deborah Aultman Posted June 17, 2018 Author Report Share Posted June 17, 2018 he owns 2 acres and two ragged out cars Quote Link to comment Share on other sites More sharing options...
BackFromTheDebt Posted June 18, 2018 Report Share Posted June 18, 2018 I wish there were a sticky on 1099-C so I wouldn't have to repeat this. Note that things are different dealing with BK. In that case, your friend needs to talk to a lawyer. Here is an example of how to deal with the 1099-C: Make a list of all your assets and liabilities at the time the 1099-C was sent. Compare the assets and liabilities BEFORE and AFTER the 1099-C ended the debt. By assets, I mean everything. I used assessed values of property and blue book value for the cars. By liabilities I mean everything. I included loans from relatives. Those are real debts, and must be included. If you are insolvent (assets < liabilities) AFTER the debt discharge, you owe no taxes. Fill out the proper forms for the IRS to show this. I included copies of my assets and liability lists. If you are solvent BEFORE the debt discharge, you owe taxes on everything discharged (BK may be an exception, talk to someone qualified for YOUR case). Suppose you were insolvent by $1000 BEFORE the discharge, and $2000 was discharged. Now you are solvent to the tune of $1000, all due to the discharge. You must pay taxes on that $1000. Again BK clouds the issue. IN that case, talk to the BK attorney who handled the BK in the first place. Quote Link to comment Share on other sites More sharing options...
Guest usctrojanalum Posted June 18, 2018 Report Share Posted June 18, 2018 good advice in here, except I wouldn't seek out a BK attorney. I would seek the advice of a tax attorney. Quote Link to comment Share on other sites More sharing options...
BackFromTheDebt Posted June 18, 2018 Report Share Posted June 18, 2018 1 hour ago, usctrojanalum said: good advice in here, except I wouldn't seek out a BK attorney. I would seek the advice of a tax attorney. In most cases I would agree with you. In this case the OP may still have to consult a tax attorney or a CPA anyway. However, this was a case of BK, and the debts may have been discharged in BK. That is why the OP should talk to the same attorney who handled the BK. Quote Link to comment Share on other sites More sharing options...
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