Legal Question in Bankruptcy in Florida

Re: Filing taxes after bankruptcy

Hello: I just read your question. I think your concern about taxes in this context arises because one can be taxed on forgiveness of debts. This is where a creditor writes off a large debt and the taxpayer is taxed on that amount as income. IRS deems the benefit to be income.

I have only heard of one being taxed for this income where the taxpayer had a large second mtg. written off and for a large credit card debt. These were not in bankruptcies. I have never had a client taxed as a result of getting debts discharged from a BR. 'Hope this helps. Tom Rosenblum