Re: I'm so confused !!!!
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Posted by Taziblue
(22.214.171.124) on April 29, 2004 at 11:07:51:
In Reply to: I'm so confused !!!! posted by Jer on April 28, 2004 at 23:06:56:
Take the 1099C. If you are insolvent when it is issued (more debt than assets) then you will not have to pay taxes on the amount of the forgiven debt. You will have to file the appropriate forms with the tax return for that year. However, that is a lot better than paying taxes on it.
It is considered income to you as it is forgiven debt.
Your attorney will be able to give you a better picture. However, most attorneys will not guarantee anything. I can tell you that some cas will settle out of court for more than you can win in order to avoid a judgment against them.
Good luck to you
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