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BK and income tax

Discussion in 'Credit Talk' started by ShyGuy, Mar 6, 2001.

  1. Mar 6, 2001 #1
    ShyGuy

    ShyGuy Well-Known Member

    Is the amount of debt discharged in a Chapter 7 considered taxable income? I know if you settle with a creditor the difference between your settlement amount and your original balance is taxable.
     
  3. Mar 6, 2001 #2
    Marie

    Marie Well-Known Member

    no

    ;) again, not much incentive to settle debts.
     
  4. Mar 6, 2001 #3
    Jim

    Jim Well-Known Member

    No

    It sure isn't taxable. In 1998, I got expert advice on this from my tax guy.
     
  5. Mar 6, 2001 #4
    Marie

    Marie Well-Known Member

    Re: No

    Actually, this made the difference in whether or not I continued trying to settle large accounts or just file a bk. Honestly, I'm now glad I did the Bk. Made better financial sense
     

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