Tag Archives: Bankruptcy and Taxes

Exception for 1099-C Tax Liability for Debts Discharged in Bankruptcy

It’s that time again. Time to explain why filing personal bankruptcy can provide enormous tax savings. Every year, several of our bankruptcy clients contact us in January or February because they have received a 1099-C form filed with the IRS by one of their former creditors. In case you don’t know, debts that are “canceled” […]

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Debt Settlement Programs Don’t Keep Credit Card Companies from Suing You

Once or twice a week, I meet with a prospective bankruptcy client who has called us, frantic, because a credit card company or some third party collection bullies for a credit card company have served her with a lawsuit summons. “I don’t understand why they would sue me,” the debtor will complain. “I’ve been paying […]

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