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Posted: Mon Feb 07, 2011 8:19 pm Post subject: foreclosure/1099

I live in MInnesota i recieved a 1099-A form after foreclosure, i believe i have been discharged from bankruptsy. It is checked i am not required to pay back the debit. Why am i receiving the 1099 Do i need to repay it or is it just for my records

smithsussane · Posted: Tue Feb 08, 2011 12:55 am Post subject:

Hi Guest!

Welcome to forums!

You will receive the 1099 form because of the fact that your property went through foreclosure. This is irrespective of the fact whether or not you filed bankruptcy.

Feel free to ask if you've further queries.

Sussane

Posted: Tue Feb 08, 2011 7:43 am Post subject:

Thanks for the answer does that mean i have to pay taxes on it or since it says no that i am not responsible for debt does that mean i don't pay taxes

jameshogg · Posted: Wed Feb 09, 2011 12:44 am Post subject:

Hi Guest,

As the deficient balance has been forgiven by the lender, you'll be liable for paying taxes on the forgiven debt.

Thanks

Posted: Wed Feb 09, 2011 9:56 am Post subject:

So why will i have to pay it back if i filed bankrupy and it was discharged or bandruptsy was granted to us. I don't know how we would be liable for taxes. I thought that is why we filed bankrupcy versus letting it go into foreclosure.

adonis · Posted: Thu Feb 10, 2011 12:03 am Post subject:

Welcome Guest,

Taxes never get discharged in bankruptcy filing. Forgiven debt is considered as an income for the consumer. Thus, the consumer will be liable for paying income tax on forgiven debt.

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