I Got a 1099C Should I File Bankruptcy?
By on March 14, 2012
I’m under debt program already 4 years, and still 2 credit cards ($ 20,000.00) are not settle. But I got 1099C and have to pay IRS and State around $8,509.00. I don’t have money to pay.
Should I file bankruptcy?
Ivonne
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Damon Day
March 15, 2012 at 5:11 am
Hello Ivonne, I would recommend you meet with a bankruptcy attorney right away to discuss the option. You don’t provide any information about your situation so we can’t advise you whether or not to do it. But if you decide it is a good option after you meet with the BK attorney, you might be able to get some money back out of the account you have been putting in the debt settlement program in order to pay for the attorney.
You should also make a list of your assets and liabilities. If you were insolvent at the time the debts were forgiven that generated the 1099C you may be eligible to request a waiver and not have to pay tax on that forgiven debt. I would check with your tax preparer about this.