Ask Bankruptcy Attorney in Sacramento Stockton Fairfield CA – After Bankruptcy: Discharged Debt and IRS Form 1099

Sacramento Bankruptcy Attorney

A creditor may mistakenly mail you an IRS Form 1099 cancellation of debt after you receive your Bankruptcy Discharge.

No sweat. When a debt is discharged by Bankruptcy, it is not considered cancellation of debt where you need to treat it as income and pay extra in taxes. In order words, debts discharged in Bankruptcy is not considered as income when filing your income tax form.

Make sure you tell your licensed tax advisor this so he or she can fill out the IRS Form 982. Check the box “Discharge of indebtedness in a title 11 case” to avoid paying taxes on the IRS Form 1099.

For more information about tax issues, you should contact a licensed tax advisor. Make sure your licensed tax advisor knows about your bankruptcy. This information will save you money. Don’t be ashamed of disclosing your bankruptcy to your tax advisor so he or she can properly complete your tax returns for you.

For bankruptcy related questions or how bankruptcy affect taxes, call Sacramento Bankruptcy Attorney Muoi Chea for more information.

For over 10 years, I have successfully represented consumers and small businesses in Chapter 7 and 13 Bankruptcy in Sacramento and Modesto Bankruptcy Courts. I accept clients throughout Northern and Central California: Elk Grove, Galt, Lodi, Citrus Heights, Carmichael, Fair Oaks, Folsom, El Dorado Hills, Roseville, Rocklin, Woodland, Davis, Stockton, Modesto, Tracy, Yuba, Sutter, Marysville, Vallejo, Vacaville, Fairfield, Stockton, Sacramento, Benicia, and other nearby cities and counties.

Sacramento Bankruptcy Attorney: 916-441-4205

Fairfield Bankruptcy Attorney: 707-394-4195

Stockton Bankruptcy Attorney: 209-751-7448