Legal Question in Bankruptcy in New Jersey
My bank is offering to issue a "full forgiveness"of a debt on a Home Equity Line of Credit. However, if I accept the offer, the amount cancelled or forgiven will be
reported to the IRS. Is there a legal way to accept the offer and yet not trigger
a taxable event for me? Would a written letter from the bank stating that the forgiveness is not a "gift"be sufficient?
I have been successfully discharged in bankruptcy(Ch 7) of all my obligations
to this bank(1st mtg plus line of credit). Then why would I even need a forgiveness
of said debt?
Asked on 8/10/12, 12:29 pm
1 Answer from Attorneys
Charles Andersen
Charles Andersen, Atty
Absolute Law If the second mortgage was included in the bankruptcy their would be no need for the banks offer, and can only confuse the issues.
Answered on 8/10/12, 12:55 pm
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