Submitted by Anonymous (not verified) on Sun, 02/17/2019 - 23:27
Do I have to pay taxes if I file bankruptcy?
What is forgiveness of debt income?
When you owe money and do not pay the full amount of the debt the lender is required to file a 1099 form with the IRS showing that you had phantom income in the amount the creditor forgave. This is referred to as ‘forgiveness of debt’.
Exceptions to forgiveness of debt: