I have a client who went bankrupt in 2009. He got his debts erased completely so I think we are talking about Chapter Seven. Will he be getting one or more Forms 1099C?
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If he filed bankruptsy, all or most will be excluded from income.Originally posted by erchess View PostThis post is for discussion purposes only and should be verified with other sources before actual use.
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Agree with Bob
but still want to know whether he will get the Forms 1099 C. My understanding is all on the 1099C(s) would be reported and then excluded and it seems to me silly to file the return before they are available. I could always amend but I don't want to do that.Comment
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Erch,
Did your client get a 1099C? I have one that went through bankruptcy that included his home and has not received a 1099C either.Comment
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The 1099-C may be issued only after the bankruptcy court closes proceedings -- which is often months after the taxpayer has "finished" the process. It is not unusual for the forms to be issued in the tax year after the bankruptcy in these cases (I even had one case where it was 2 years after). They are still excluded, of course.Comment
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It has been know to happen even though it is generally considered a violation of the discharge injunction.Originally posted by erchess View PostComment
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I had one earlier that filed bankruptcy in 2006 with the discharge in 2007. They received a 1099-C from Credit card Company (credit card debt) for 2009:
Date cancelled 12/26/09
#4 Description - Credit Card Account
#5 personally liable - Yes
#6 - Bankruptcy -YesComment
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Thank you all for responding. Looks like it may be 2010. He said that he last went to court in Sept 09 and they said it would be 120 days to get the paper work. So I don't know if that means everything was finished or not. I will just tell him that he may get one and to be on the look out for it.Comment
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