Posts: 93
Registered: ‎06-26-2009

Ch 7 bankruptcy - discharge mortgages no 1099 C?

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?

Community Leader
Valued Contributor
Posts: 2,198
Registered: ‎11-29-2012

Re: Ch 7 bankruptcy - discharge mortgages no 1099 C?

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.  

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 7/30/14 TU 611; EQ 650; EX 640
Goal Score:  625 for now– New goal 675

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Valued Contributor
Posts: 1,062
Registered: ‎05-26-2010

Re: Ch 7 bankruptcy - discharge mortgages no 1099 C?

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.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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