Posted on: 27th Jan, 2010 07:52 pm
my husband and were received a bankruptcy discharge September 2008, which included a home loan. They foreclosed on us the following year, per our attorney this is "normal" becuase even though we had no mortgage any longer due to the bankruptcy, they still need to foreclose to take the property back. It was foreclosed on September 2009 and now, Jan 2010 we have received a 1099-A form stating that the balence was 84,516 and the FMV was 50,000 and box #5 states "yes" we are are liable for the repayment of the debt. What does this mean? is this an error? I thought the bankruptcy cleared it all away. How does this affect how I need to do my taxes this year? HELP!!!
I received a 1099-A for 2012. I filed for Chapter 7 on 10/2012 and received a discharge from the court on 02/2011. The property was our primary residence until we moved on 8/2012:
Box1- Date of lenders acquisition of abandonment 1/30/12
Box2- Principal balance outstanding $277,822.85
Box4- FMV $74,375
Box 5 - Checked, borrower was personally liable of repayment or debit.
OMG! I'm stressing out. Did the chapter 7 not cover this discharge. How or what do I do with my taxes for 2013? Please help!
Box1- Date of lenders acquisition of abandonment 1/30/12
Box2- Principal balance outstanding $277,822.85
Box4- FMV $74,375
Box 5 - Checked, borrower was personally liable of repayment or debit.
OMG! I'm stressing out. Did the chapter 7 not cover this discharge. How or what do I do with my taxes for 2013? Please help!
correction filed Chapter 7 on 11/2010, discharged on 01/2011 and received 1099-A for 2012..please help
Hi Guest,
If you were personally liable for paying the debt, then did you pay it off? If yes, then you won't have to pay taxes. It will be better if you could immediately get in touch with a tax adviser and take his opinion in this regard.
Welcome stressedbownie,
As per the 1099a form, you were liable for paying the deficient balance. But if you haven't reaffirmed the loan, then you're not personally liable for it. Contact your bankruptcy attorney and take his opinion in this regard.
If you were personally liable for paying the debt, then did you pay it off? If yes, then you won't have to pay taxes. It will be better if you could immediately get in touch with a tax adviser and take his opinion in this regard.
Welcome stressedbownie,
As per the 1099a form, you were liable for paying the deficient balance. But if you haven't reaffirmed the loan, then you're not personally liable for it. Contact your bankruptcy attorney and take his opinion in this regard.
Hi,
I rec'd a 1099-A dated 1/20/12. I foreclosed and gave home back to bank through bankruptcy that was discharged on 5/19/11. Balance on principal is 271,657.32 and FMV is 120,100.00. Box 5 is NOT marked. I am unsure how to treat this document as I just received it 1/21/13 but it was 1099 to me dated 1/20/12. Am I liable for the difference as income? I thought my BK dismissed me from this debt when I gave my home back through the bk process? Please help! Thanks, les
I rec'd a 1099-A dated 1/20/12. I foreclosed and gave home back to bank through bankruptcy that was discharged on 5/19/11. Balance on principal is 271,657.32 and FMV is 120,100.00. Box 5 is NOT marked. I am unsure how to treat this document as I just received it 1/21/13 but it was 1099 to me dated 1/20/12. Am I liable for the difference as income? I thought my BK dismissed me from this debt when I gave my home back through the bk process? Please help! Thanks, les
Welcome Les,
If the box is not checked, then you are not liable for paying the deficient balance resulting from the sale of the property. The lender has forgiven your deficient balance.
If the box is not checked, then you are not liable for paying the deficient balance resulting from the sale of the property. The lender has forgiven your deficient balance.
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