So we filed ch7 that was discharged in May 2011. Included was 1st, 2nd and HELOC. We still live in the home and pay ONLY the first mortgage. My bk attorney said as long as I pay they will not / should not kick me out and foreclose. If the 2nd/3rd liens want to foreclose they would have to buy out the 1st mortgage, which is 6-7 times the amounts.
I was expecting to receive a 1099 C but have not received anything. It's tax time and I'm not sure what to do. Should I have gotten one? If so, which one? I'm still paing on the first so I don't think the bank has or will cancel that. I have not paid on the 2nd/3rd.. so I would have thought I would have received 1099 C for those.. but nothing.
Anyone have any experience with this?
They won't send it until its the absolutely most inconvenient time possible for you, like the year you plan on using your refunds to landscape or do some remodeling or something.
I included everything I discharged on Form 982 for the year I filed. If someone sends a 1099C later provide an explanation and copy of the 982 with that year's tax return. Debt discharged in BK is almost never taxable.