1099 cancellation of debt consequences and bankruptcy: Do you now owe taxes on all that debt you discharged?
Many debtors who filed bankruptcy and received a discharge also receive a 1099 cancellation of debt from creditors whose debt they discharged in bankruptcy in the form of a 1099-C or 1099-A. This means whether it’s your American Express debt or your first mortgage that you discharged in bankruptcy, you could potentially receive a 1099 …
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