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  1. #1

    Default Creditors Who Did Not File a Proof of Claim and Tax Liability

    My question is in the State of NY.

    I filed for Bankruptcy chapter 13 in 2009. My plan was confirmed and I have been making payments to my trustee. However, all creditors had a change to file a proof of claim and not all of them did. Those that did not file a proof of claim and that I did not have to pay, will they send me a 1099-R debt cancellation form and the end of year? I know that if you settle with a credit card at lower amount that you owe them, you get to pay taxes on the amount you saved. I just do not know about those debt I included in Bankruptcy chapter 13 that I was supposed to repay them only those who filed a proof of claim.

    Thank you.

  2. #2
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    Default Re: Creditors Who Did Not File a Proof of Claim and Taxes Now

    You mean a 1099-C? IRS Form 1099-R is for "Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc."

    It doesn't matter if they sent you a 1099-C after the debt is discharged in bankruptcy, as post-discharge the amount they write off is not taxable income.

  3. #3

    Default Re: Creditors Who Did Not File a Proof of Claim and Taxes Now

    Thanks. However, I am not talking about the debts that will be discharged in Chapter 13 once the plan is met. What I am talking about are the debts that when I filed for Chapter 13, they were not included in the plan because the creditors failed to file a proof of claim on time.

    Thank you.

  4. #4
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    Default Re: Creditors Who Did Not File a Proof of Claim and Taxes Now

    Why don't you believe those debts will be discharged?

  5. #5

    Default Re: Creditors Who Did Not File a Proof of Claim and Taxes Now

    Well, I had a total of $ 20,000.00 in debt. Only $ 15,000.00 filed a proof of claim in which I am paying actually 100% back in 60 months. However, $ 5,000.00 did not filed proof of claim and my attorney told me I would not be responsible for that amount in my BK 13. So, what will happen to those debts ($ 5,000.00) I had when I filed for BK 13 and were not included in my chapter 13 plan for that fact the creditors never filed a proof of claim? Will they also be considered discharged if though I never paid them, not even a percentage, or will the creditors send me a 1099-C Cancellation of debt?

    Thanks again.

  6. #6
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    Default Re: Creditors Who Did Not File a Proof of Claim and Taxes Now

    Quote Quoting mjsantos
    View Post
    Well, I had a total of $ 20,000.00 in debt. Only $ 15,000.00 filed a proof of claim in which I am paying actually 100% back in 60 months. However, $ 5,000.00 did not filed proof of claim and my attorney told me I would not be responsible for that amount in my BK 13. So, what will happen to those debts ($ 5,000.00) I had when I filed for BK 13 and were not included in my chapter 13 plan for that fact the creditors never filed a proof of claim? Will they also be considered discharged if though I never paid them, not even a percentage, or will the creditors send me a 1099-C Cancellation of debt?

    Thanks again.
    That 5k is still discharged in the bankruptcy.

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