Comments for Bankruptcy Sensei http://bankruptcysensei.com The Authority on Bankruptcy Thu, 26 Apr 2012 21:05:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on IRS Form 1099-A and 1099-C After Bankruptcy, What Do I Do? by Tripoli Brian http://bankruptcysensei.com/2011/02/06/irs-form-1099-a-and-1099-c-after-bankruptcy-what-do-i-do/#comment-4623 Tripoli Brian Thu, 26 Apr 2012 21:05:00 +0000 http://methnerlaw.com/?p=1884#comment-4623 What are the tax consequences of doing a loan modification on a primary residence after a Ch 7 bk and then doing a short sale on the home in the next few years?  Does the loan mod reaffirm the debt and then if that debt is forgiven via short sale, will i be liable for the forgiven amount? What are the tax consequences of doing a loan modification on a primary residence after a Ch 7 bk and then doing a short sale on the home in the next few years?  Does the loan mod reaffirm the debt and then if that debt is forgiven via short sale, will i be liable for the forgiven amount?

]]> Comment on How Long After Your Bankruptcy Closes Can a Trustee Reopen the Case? by Anonymous http://bankruptcysensei.com/2010/03/25/how-long-after-your-bankruptcy-closes-can-a-trustee-reopen-the-case/#comment-4610 Anonymous Wed, 22 Feb 2012 19:05:00 +0000 http://askmethner.com/?p=1055#comment-4610  There are a myriad of possible issues here. First, I am not sure what the bankruptcy has to do with short selling the house? Is it because there are judgment liens on the home and you need avoid them in the bankruptcy? If yes, then you may need to reopen depending on your jurisdiction and have them removed. If there are no judgment liens and the issue is just that you are on the deed, then you likely need a real estate lawyer to help close this deal. The best thing to do is contact the bankruptcy attorney you used in the past or a new bankruptcy attorney. They can help with the legal work necessary to handle this issue.  There are a myriad of possible issues here. First, I am not sure what the bankruptcy has to do with short selling the house? Is it because there are judgment liens on the home and you need avoid them in the bankruptcy? If yes, then you may need to reopen depending on your jurisdiction and have them removed. If there are no judgment liens and the issue is just that you are on the deed, then you likely need a real estate lawyer to help close this deal. The best thing to do is contact the bankruptcy attorney you used in the past or a new bankruptcy attorney. They can help with the legal work necessary to handle this issue.

]]> Comment on How Long After Your Bankruptcy Closes Can a Trustee Reopen the Case? by Erg2870 http://bankruptcysensei.com/2010/03/25/how-long-after-your-bankruptcy-closes-can-a-trustee-reopen-the-case/#comment-4606 Erg2870 Mon, 20 Feb 2012 17:48:00 +0000 http://askmethner.com/?p=1055#comment-4606 My husband and I are separated and I turned over the house to him. He tried to do a short sale on the house and the closing company says the title is not clear so it can not be sold. My name was on the deed but not on the loan for mortgage. I filed bankruptcy almost 4 years ago and they are saying that is the reason he can not sell the house because it was not properly scheduled? Can this be reopened? My husband and I are separated and I turned over the house to him. He tried to do a short sale on the house and the closing company says the title is not clear so it can not be sold. My name was on the deed but not on the loan for mortgage. I filed bankruptcy almost 4 years ago and they are saying that is the reason he can not sell the house because it was not properly scheduled? Can this be reopened?

]]> Comment on IRS Form 1099-A and 1099-C After Bankruptcy, What Do I Do? by Anonymous http://bankruptcysensei.com/2011/02/06/irs-form-1099-a-and-1099-c-after-bankruptcy-what-do-i-do/#comment-4603 Anonymous Fri, 10 Feb 2012 16:56:00 +0000 http://methnerlaw.com/?p=1884#comment-4603 Foreclosure, deed-in-lieu, short sale, or sale of the property are all the same. They are disposing of the property. You may have tax consequences if you sell/dispose of the property for more than the basis (possibly your purchase price). This piece has nothing to do with bankruptcy. This is a general tax issue. A CPA can help you determine whether this is an issue or not. Separately, if you owe someone money and you do not pay it back, then the IRS says that the amount you did not pay back is income to you. Just like you earned it at your job. That is why when debt is forgiven you receive a 1099-C. It shows income for forgiven debt. Now, if you file bankruptcy, then the amount you did not paid back on the debt does not become income to you. This is due to filing the bankruptcy. It is a benefit of filing the bankruptcy. You still may receive a 1099 from the lender and you need to fill-out appropriate tax forms to show you do not have to pay taxes on the forgiven amount. See IRS Publication 908 (03/2009), Bankruptcy Tax Guide at http://www.irs.gov/publications/p908/index.html. Also, check out IRS Publication 4681 at http://www.irs.gov/pub/irs-pdf/p4681.pdf. For help with your specific matter and situation you should contact a tax professional. Foreclosure, deed-in-lieu, short sale, or sale of the property are all the same. They are disposing of the property. You may have tax consequences if you sell/dispose of the property for more than the basis (possibly your purchase price). This piece has nothing to do with bankruptcy. This is a general tax issue. A CPA can help you determine whether this is an issue or not. Separately, if you owe someone money and you do not pay it back, then the IRS says that the amount you did not pay back is income to you. Just like you earned it at your job. That is why when debt is forgiven you receive a 1099-C. It shows income for forgiven debt. Now, if you file bankruptcy, then the amount you did not paid back on the debt does not become income to you. This is due to filing the bankruptcy. It is a benefit of filing the bankruptcy. You still may receive a 1099 from the lender and you need to fill-out appropriate tax forms to show you do not have to pay taxes on the forgiven amount. See IRS
Publication 908 (03/2009), Bankruptcy Tax Guide at http://www.irs.gov/publications/p908/index.html. Also, check out IRS Publication 4681 at http://www.irs.gov/pub/irs-pdf/p4681.pdf.
For help with your specific matter and situation you should contact a tax professional.

]]> Comment on IRS Form 1099-A and 1099-C After Bankruptcy, What Do I Do? by David http://bankruptcysensei.com/2011/02/06/irs-form-1099-a-and-1099-c-after-bankruptcy-what-do-i-do/#comment-4602 David Fri, 10 Feb 2012 15:47:00 +0000 http://methnerlaw.com/?p=1884#comment-4602 so as mentioned in another post, it would be better to just let the property foreclose - then there would be no tax liability due to the bankruptcy? so as mentioned in another post, it would be better to just let the property foreclose – then there would be no tax liability due to the bankruptcy?

]]> Comment on IRS Form 1099-A and 1099-C After Bankruptcy, What Do I Do? by Anonymous http://bankruptcysensei.com/2011/02/06/irs-form-1099-a-and-1099-c-after-bankruptcy-what-do-i-do/#comment-4601 Anonymous Fri, 10 Feb 2012 15:43:00 +0000 http://methnerlaw.com/?p=1884#comment-4601  In general, there is no income tax for cancellation of debt even if you receive a 1099-C after filing bankruptcy. However, the base tax rules apply, in which you sell or dispose of an asset (deed-in-lieu) and if you sell it for more than your basis, then you may have a taxable gain.  In general, there is no income tax for cancellation of debt even if you receive a 1099-C after filing bankruptcy. However, the base tax rules apply, in which you sell or dispose of an asset (deed-in-lieu) and if you sell it for more than your basis, then you may have a taxable gain.

]]> Comment on IRS Form 1099-A and 1099-C After Bankruptcy, What Do I Do? by David http://bankruptcysensei.com/2011/02/06/irs-form-1099-a-and-1099-c-after-bankruptcy-what-do-i-do/#comment-4600 David Wed, 08 Feb 2012 00:54:00 +0000 http://methnerlaw.com/?p=1884#comment-4600 would you be liable for tax if you filed for bankruptcy (chapter 7) and then did a deed-in-lieu to hand the house over to the bank? would you be liable for tax if you filed for bankruptcy (chapter 7) and then did a deed-in-lieu to hand the house over to the bank?

]]> Comment on What Counts As Income For The Means Test? by Ed Mitchem http://bankruptcysensei.com/2010/04/22/what-counts-as-income-for-the-means-test/#comment-4560 Ed Mitchem Sun, 29 Jan 2012 17:21:01 +0000 http://askmethner.com/?p=1097#comment-4560 I sold a vacant lot that I owned. No Capital gain. Just 'return on capital'. Is the 'return on capital' considerted income for the 'means test' I sold a vacant lot that I owned. No Capital gain. Just ‘return on capital’. Is the ‘return on capital’ considerted income for the ‘means test’

]]> Comment on Advice by Faye http://bankruptcysensei.com/advice/#comment-4538 Faye Thu, 26 Jan 2012 17:25:31 +0000 http://methnerlaw.com/v2/#comment-4538 Awesome article, neat blog template, maintain the great work Awesome article, neat blog template, maintain the great work

]]> Comment on IRS Form 1099-A and 1099-C After Bankruptcy, What Do I Do? by Ron http://bankruptcysensei.com/2011/02/06/irs-form-1099-a-and-1099-c-after-bankruptcy-what-do-i-do/#comment-4535 Ron Thu, 26 Jan 2012 15:09:34 +0000 http://methnerlaw.com/?p=1884#comment-4535 Thank you for the information. How about in a situation where the said foreclosed property was the principle residence...and a second investment property was shortsold years ago....and IRS form 982 was filed to decrease the base of the property that is now in foreclosure. What are the tax consequences if any? Keep in mind the home owner went through a chapter 7 bankruptcy and the estate was included and discharged. Thank you for the information.

How about in a situation where the said foreclosed property was the principle residence…and a second investment property was shortsold years ago….and IRS form 982 was filed to decrease the base of the property that is now in foreclosure. What are the tax consequences if any? Keep in mind the home owner went through a chapter 7 bankruptcy and the estate was included and discharged.

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