
Quoting
cashflow
I filed for Chapter 7 bankruptcy and included my 1st and 2nd mortgage (both from the same lender). I didn't receive a 1099-A or C from my first mortgage, but I did receive a 1099-A for my 2nd mortgage. The lender said that I am not liable for taxes but when I input the the information from the 1099-A into Turbo Tax its showing that I owe taxes on it. My bankruptcy was discharged before I received this 1099-A. From what I understand I don't owe taxes on bankruptcy discharges. On the 1099-A it says the balance of principal outstanding is 35k and the fair market value is 1.5k (it wasn't re-appraised), it also says under box 5 that the borrower was personally liable for repayment of debt. Please advise.