My question involves bankruptcy in the state of: California
Is there a mortgage (given by lenders/banks) that CAN NOT be included in a Bankruptcy? I.e. if one were to file Bankruptcy, and receive a 1099 from a foreclosure, will income taxes have to be paid?
My understanding is that income taxes will NOT have to be paid, since those mortgage(s) are included in the Bankruptcy… is this understanding correct?

