divorce happens 2004. Wife gets out with $300,000 as husband is doing well and husband keeps the house. At the time of divorce husband was supposed to refinance and get wife off of the mortgage-it does not get done so wife does not want to postpone divorce and she has her cut and goes through with it with the condition that husband gets refi done. Husband's world falls apart cannot get refi. Wife in 2009 finds out her savings account has been taken - at the same place as the mortgage holder. Basicaly her only asset is a house mortgage free worth under $300,000, lawyer says you can pay me to fight the mortgage company or file bankruptcy and keep you only asset. He said fighting the mortgage company probably would take years and chance of victory was 50/50 at best. She files bankruptcy in 2009 (not insolvent has house). 2010 she gets the 1099A which have the numbers are Debt $163,000 and the FMV $825,000. The house cost was originally about $650,000, with a mortgage around $625,000 and then a build out 2nd mortgage for around $300,000. She thinks the two mortgages had to be $800,000+ at the forclosure.
Does the bankruptcy in 2009 prevent or should have prevented the 1099A from being issued in 2010. X-Husband stopped paying mortgage in early in 2009 left him there until they sold the house in September 2010.
Does she have an out - there was nothing but acquisition and construction indebtness on the house, but by 2010 she had not lived there of 2-5 the last 5.
Does the bankruptcy in 2009 prevent or should have prevented the 1099A from being issued in 2010. X-Husband stopped paying mortgage in early in 2009 left him there until they sold the house in September 2010.
Does she have an out - there was nothing but acquisition and construction indebtness on the house, but by 2010 she had not lived there of 2-5 the last 5.