Legal Question in Bankruptcy in Georgia

I just received a 1099 from my mortgage company, BOA, for the difference in selling price and amt. of the original loan, on a debt that was discharged through bankruptcy in February 2011. Can they do that? My second question is about the property. The original purchase included two seperate lots. The mortgage company sold only the main lot, with the house on it. That second lot has value to it also, it appears there are impropriatries being done by BOA.


Asked on 1/30/12, 6:02 am

3 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

You did not tell us the year covered by the 1099 or which 1099 you received, but a 1099 is not a bill. Discuss the details with your Bankruptcy lawyer. In addition, no one here knows the status of the second lot, whether it was foreclosed, sold, the value, etc., so certainly no one here can tell you the Bank did anything inappropriate. It is normal to get a 1099 after collateral is sold and applied to a debt. That does not mean you owe taxes and it does not mean anything inappropriate was done. Discuss your tax situation with a CPA.

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Answered on 1/30/12, 6:11 am
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Nothing in your post is improper.

First of all, the bank is allowed to sell, or not sell, the property, or to sell it in parts. (Read the loan documents and you'd see that; it's standard and you signed it).

Second, a 1099 is required by federal law. Your CPA will know how to report the 1099 (because of the bankruptcy you don't pay tax, but you do get to deal with the correct tax forms). Ask the CPA that does your taxes.

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Answered on 1/30/12, 6:18 am


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