My question involves bankruptcy in the state of: California
I filed for Chapter 13 bankruptcy in May of 2011 to strip the 2nd mortgage on my primary residence (and the only property that I own) along with some unsecured personal debt. The value of my property is still worth less than the principle balance on my first mortgage. How do I report this on my 2011 tax return?
I didnít receive anything in the mail from the bankruptcy trustee or any of the creditors in terms of tax documents or anything reported to the IRS that I would need to disclose. I also couldnít find anything or anywhere in the HR Block tax software for me to disclose details of my Chapter 13 filing. Does this mean that thereís really nothing that I need to report with regards to my Chapter 13 filing on my tax return? Do I simply treat the year that I filed Chapter 13 just like any other normal tax year and file my taxes per usual? Or is there additional paperwork, forms or hoops to jump through?
Thanks in advance for taking the time to answer my question.