Results 1 to 2 of 2
  1. #1
    Join Date
    Mar 2006

    Default Filing taxes after a Chapter 7 bankruptcy.

    I filed bankruptcy last Jan, and was issued a discharge in May of 2005. (No asset case). I have been reading about you have to claim discharged debts on income taxes via taxable attributes. I have no idea what this is talking about. Please help

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Discharge of Debts

    If you negotiate a reduction in a debt outside of bankruptcy, the creditor will typically report the amount of the reduction to the IRS and it will be taxable as income. (e.g., you have a $8,000.00 debt and negotiate a reduction to $3,000.00. The Lender will report the $5,000.00 reduction to the IRS, which will generally treat that amount as taxable income.)

    That does not apply in bankruptcy - that is, you should not have any tax obligation for debts discharged in bankruptcy. The bankrupt estate would file a tax return, but the trustee should attend to that as outlined here.

    1. Sponsored Links

Similar Threads

  1. Chapter 13: Filed Bankruptcy 13 and Now Filing Taxes
    By mjsantos in forum Bankruptcy Law
    Replies: 4
    Last Post: 02-22-2010, 01:16 PM
  2. Chapter 7: Filing Taxes After A Chapter 7 Discharge
    By thepatters in forum Bankruptcy Law
    Replies: 5
    Last Post: 02-12-2008, 10:52 AM
  3. Chapter 7: Filing Taxes Before Filing Chapter 7 Bankruptcy
    By peavoo in forum Bankruptcy Law
    Replies: 2
    Last Post: 01-07-2008, 01:50 PM
  4. Chapter 7: Filing Taxes After Chapter 7 Discharge
    By mommy2 in forum Bankruptcy Law
    Replies: 1
    Last Post: 03-06-2006, 03:44 PM
  5. Chapter 13: Filing Chapter 13 Bankruptcy After a Chapter 7 Discharge
    By jeremy24175 in forum Bankruptcy Law
    Replies: 4
    Last Post: 09-14-2005, 10:51 AM
Sponsored Links

Legal Help, Information and Resources