Legal Question in Bankruptcy in California

Under what circumstances does a discharged debt get reported as income for the d

I am a judgment creditor ($5400.00) in California and the judgment debtor is filing chapter 7 just to keep from paying me. (1) Did I read somewhere that I can report the full amount on a modified 1099 form to make the debtor pay taxes same as if the discharged debt were income? The judgment stems from a civil case where they sued me for harassment and had not even one of the 4 requirements for civil harassment. They lied on their petition and their case was dismissed on summary judgment. (2) Can I use any of this to prevent them from discharging the debt? Thanks.


Asked on 3/12/02, 12:17 am

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Under what circumstances does a discharged debt get reported as income for t

You are asking several different questions. First, you can send the debtor a 1099 form if the debtor was paid money by you. However, it is not taxable income to the debtor if the debt is discharged in bankruptcy. As for whether you can successfully object to his discharge, I would need to know what the basis of the debt owed to you is and get a lot more information on the underlying debt.

Read more
Answered on 3/12/02, 12:20 am
Victor Hobbs Victor E. Hobbs

Re: Under what circumstances does a discharged debt get reported as income for t

Mark's answer is a good one. Section 523 of the bankruptcy code sets forth the various types of debts that are not dischargeable. Most have to be filed on and a then trial in BK Court to determine their dischargeability.

Read more
Answered on 3/12/02, 6:42 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California