My Ex and I Both Got 1099-C Forms On an Old Debt


Dear Steve,

My ex and I took out a HELOC before the divorce.

She quit claimed the home to me. I recently settled w HELOC, and the balance of the debt was forgiven.

My ex and I both received 1099-c forms. My debt was discharged through a chapter 7 bankruptcy.

My ex never claimed bankruptcy. Do we both have to include 1099-c income when filing taxes?

I am confident my 1099-c income will be exempt due to bankruptcy, but what about my ex?

She may qualify due to being insolvent, but curious what implications for her are if I claim the full amount and am exempt from my bankruptcy.



Dear Jeffrey,

It can certainly be confusing. But you should read this previous answer for some guidance.

If your ex was insolvent in that tax year, then IRS Form 982 could help her quickly deal with this.

The underlying issue was that even though she transferred her ownership of the property to you through a quitclaim deed, it did not alter her relationship with the lender for the loan.

I don’t think there is any better place for your ex to get specific advice about this situation than to talk to an experienced tax professional for guidance.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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