Should I File a Form 982 Over Forgiven TERI Student Loan Debts?

Question:

Dear Steve,

Received 1099c March 23 2018 after 2017 taxes filed and received refund. I had filed bankruptcy in 1993 and listed creditor (TERI Student Loan) on bankruptcy. The loans were received in 1988 and 1990. They have never filed a court case and I have never paid.

Should I file IRS Form 982?

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Dan

Answer:

Dear Dan,

If you were insolvent at the end of 2017 then Form 982 can be your friend.

But since you’ve already filed you would need to file an amended return, I think?

Clearly, I’m not a tax expert and I would advise you to talk to a tax professional to determine the best course of events to deal with this.

 Sincerly,
 Steve

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