Legal Question in Tax Law in New York

I went chapter 7 bankrupt in 2010 and included mortgages. My home was foreclosed on in 2011 (New York). First mortgage (in husband and my name) was satisfied. Second (in my name) was not. Can 2nd bank go after husband (separated)? Can 2nd send me a 1099? For 2nd - balance of $65000. FMV - $140,000


Asked on 1/31/12, 12:54 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

If your husband was not a signatory to the Note and/or Mortgage. he cannot be sued. Not having seen these documents, this is a general response. Yes, if the property is sold for less than your mortgage, you have been relieved of debt repayment by the bankruptcy, and this constitutes your receipt of income. A 1099 for the differential can be sent.

Read more
Answered on 2/01/12, 10:38 am


Related Questions & Answers

More Tax and Taxation Law questions and answers in New York