Discharge of Debtor

[bekzm]

Got a client that has a letter: United State Bankruptcy Court Chapter 7. Appearing that the debtor is entitled to a discharge and ordered is granted a discharge under section 727 of title 11 - date 9/11/08. O M G. No other papers - it is a rental house she says with just a note - lost in bankruptcy. No form - no nothing. Can I do anything for this or what do I do with this?
Hate to sound lost/dumb but don't I need some kind of figures - forms - 1099C or anything? From what I read - a short tax return has to filed - but have no papers for anythings on it - just that filed bankruptcy. Wow - what to do? Any suggestions.

Thanks

[WhiteOleander]

If a debt is discharged in bankruptcy, then the t/p should not receive a 1099C. There is nothing to be done on the t/p's personal return.

Sometimes a creditor might send a 1099C for a debt discharged in bankruptcy in error. Then it would be reported on the 1040 and shown that the client was bankrupt.

Just make sure that if they do get a 1099C after bankruptcy that the debt was actually included in the discharge.

[bekzm]

Thank u

Wow - thank you - I really appreciate everyones help when tired.
Happy days