Legal Question in Bankruptcy in California
creditors reporting debt to IRS
If I file for chapter 7, will creditors at some point report the debt to the IRS as income? Would this necessarily occur at some point whether or not I filed for bankruptcy?
Asked on 9/07/02, 9:32 pm
2 Answers from Attorneys
Mark Markus
Law Office of Mark J. Markus
Re: creditors reporting debt to IRS
They will report it if they are required to, but debt discharged in a bankruptcy is not taxable income (26 U.S.C. 109, I believe)
Answered on 9/07/02, 9:47 pm
Amy Ghosh
Law Offices of Amy Ghosh
Re: creditors reporting debt to IRS
Debts discharged in bankruptcy is not taxable income
Answered on 9/08/02, 12:37 am
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