Question in the State of: NY
In February 2009 I settled with one of my credit cards. However, trying to settle with the rest and not being successful I decided to file for Bankruptcy Chapter 13 in September 2009. I already have my confirmation hearing and I am current paying it. Now, I just received a 1099-C for Cancellation of Debt in which I have to include in my tax. This is for the settlement I did back in February 2009, before filling Bk. Now I have to file my income tax and I was wondering if by filling BK chapter 13 will help me decreasing my income or at least with the amount I will have to include as income for the settlement I did. I owed $ 15,000.00 and I settled for $ 2,000.00 and now I have to claim $ 13,000.00 for debt cancellation as income. Can BK 13 help me?