Central District Consumer Bankruptcy Attorney's Association

There is no dilemma. Like John said, the obligation was discharged in the chapter 7. That is all that matters. When and even if the lien was stripped is irrelevant to the fact that personal liability was discharged. If chapter 7 discharged the debt in 2009, a 2017 1099c was still actually discharged in 2009. Understandably, The tax preparer does not face this situation much, if ever. Discharge in a case under title 11 is an exception to taxation of discharge of indebtedness income.
If debtor owned a building that was upside down with underwater jr trust deed and went through a chapter 7 receiving a discharge and a couple years later the 1st trust deed foreclosed. Exact same result - no discharge of debt liability on the unpaid jr lien because it was discharged in the Bk. This is the case regardless of whether the jr lienholder received something or nothing from the sale.
Mark Jessee
Sent from my iPhone
> On Jul 21, 2018, at 8:10 AM, Craig J Beauchamp legallycraig@gmail.com [cdcbaa] wrote:
>
> Debtor is insolvent then when he got the lien stripped, but since then while only on SS income does have equity in home as values have improved since his 2009 to 2014 Ch 13 when 2nd mortgage lien was stripped. But no funds to pay off taxes incurred by bank's 1099..
>
> He's also 30k in arrears on home trying for loan mod but doubtful. so he may be looking at another Ch13 but then might have to pay off taxes which should have been discharged..
>
> dilemma!
>
>> On Fri, Jul 20, 2018, 7:32 PM John Faucher j.d.faucher@sbcglobal.net [cdcbaa] wrote:
>>
>> The debtor's personal liability was wiped out
>> with the chapter 7 discharge (I assume there was one). But the bank still had the chance to collect based on its lien. Did the debtor get an order stripping the lien, and that triggered the 1099? If so, the discharge occurred in a title 11 proceeding, and the exclusion applies.
>> Alternatively, I doubt your debtor is solvent. Insolvency is also a reason to use Section 108.
>> I don't see any way to slice it where the debtor/taxpayer needs to report the COD income on his return.
>> - John D. Faucher
>>
roups.com>
>> To: cdcbaa@yahoogroups.com
>> Sent: Friday, July 20, 2018 4:03 PM
>> Subject: [cdcbaa] can a PC reopen a ch13/20 to get discharge
>>
>>
>> I have a PC who filed a 7 and then a 13 to avoid foreclosure and to strip the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge for 13s in a 20.
>>
>> Now PC got hit with an humongous 1099 in 2017 from the bank and needs a copy of the discharge to avoid paying taxes.
>>
>> His tax preparer doesn't believe he can just use the Ch 7.
>>
>> if this is true, now that 13s in a 20 can receive a discharge, does anyone think I can reopen now and file the compliance form for a discharge?
>>
>> Craig J Beauchamp
>>
>>
>
>

The post was migrated from Yahoo.

Reply-To: Craig J Beauchamp
X-Original-Return-Path: Craig J Beauchamp
To: cdcbaa@yahoogroups.com
X-Yahoo-Newman-Id: groups-system
Debtor is insolvent then when he got the lien stripped, but since then
while only on SS income does have equity in home as values have improved
since his 2009 to 2014 Ch 13 when 2nd mortgage lien was stripped. But no
funds to pay off taxes incurred by bank's 1099.
He's also 30k in arrears on home trying for loan mod but doubtful. so he
may be looking at another Ch13 but then might have to pay off taxes which
should have been discharged.
dilemma!
On Fri, Jul 20, 2018, 7:32 PM John Faucher j.d.faucher@sbcglobal.net
[cdcbaa] wrote:
>
>
> The debtor's personal liability was wiped out with the chapter 7 discharge
> (I assume there was one). But the bank still had the chance to collect
> based on its lien. Did the debtor get an order stripping the lien, and that
> triggered the 1099? If so, the discharge occurred in a title 11 proceeding,
> and the exclusion applies.
> Alternatively, I doubt your debtor is solvent. Insolvency is also a reason
> to use Section 108.
> I don't see any way to slice it where the debtor/taxpayer needs to report
> the COD income on his return.
> - John D. Faucher
>
> ------------------------------
> *From:* "Craig J Beauchamp legallycraig@gmail.com [cdcbaa]" cdcbaa@yahoogroups.com>
> *To:* cdcbaa@yahoogroups.com
> *Sent:* Friday, July 20, 2018 4:03 PM
> *Subject:* [cdcbaa] can a PC reopen a ch13/20 to get discharge
>
>
> I have a PC who filed a 7 and then a 13 to avoid foreclosure and to strip
> the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge
> for 13s in a 20.
>
> Now PC got hit with an humongous 1099 in 2017 from the bank and needs a
> copy of the discharge to avoid paying taxes.
>
> His tax preparer doesn't believe he can just use the Ch 7.
>
> if this is true, now that 13s in a 20 can receive a discharge, does anyone
> think I can reopen now and file the compliance form for a discharge?
>
> Craig J Beauchamp
>
>
>
>
Debtor is insolvent then when he got the lien stripped, but since then while only on SS income does have equity in home as values have improved since his 2009 to 2014 Ch 13 when 2nd mortgage lien was stripped. But no funds to pay off taxes incurred by bank's 1099.
The post was migrated from Yahoo.

Amen. The bank's decision to report the income in a specific year does not dictate what goes on the taxpayer's return.- John D. Faucher
To: cdcbaa@yahoogroups.com
Sent: Friday, July 20, 2018 4:18 PM
Subject: Re: [cdcbaa] can a PC reopen a ch13/20 to get discharge
t would have been discharged in that case, which became a non-recourse secured claim in the chapter 13.
Law Office of Eric Alan Mitnick21515 Hawthorne Boulevard, Suite 1080Torrance, California 90503Telephone: (310) 792-5864Facsimile: (310) 347-4353Email: MitnickLaw@aol.com,MitnickLaw@gmail.com Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by the sender for any loss or damage arising in any way from its use.
The information contained in this email message and any attached files may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited. If you think that you have received this email message in error, please notify the sender by reply email, and delete the email message you received and all of the attached files.
***NOTICE OF EX PARTE HEARINGS WILL NOT BE ACCEPTED BY EMAIL***
.com>
To: cdcbaa
Sent: Fri, Jul 20, 2018 4:03 pm
Subject: [cdcbaa] can a PC reopen a ch13/20 to get discharge
o strip the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge for 13s in a 20.
Now PC got hit with an humongous 1099 in 2017 from the bank and needs a copy of the discharge to avoid paying taxes.
His tax preparer doesn't believe he can just use the Ch 7.
if this is true, now that 13s in a 20 can receive a discharge, does anyone think I can reopen now and file the compliance form for a discharge?

The post was migrated from Yahoo.

The debtor's personal liability was wiped out with the chapter 7 discharge (I assume there was one). But the bank still had the chance to collect based on its lien. Did the debtor get an order stripping the lien, and that triggered the 1099? If so, the discharge occurred in a title 11 proceeding, and the exclusion applies.Alternatively, I doubt your debtor is solvent. Insolvency is also a reason to use Section 108.I don't see any way to slice it where the debtor/taxpayer needs to report the COD income on his return.- John D. Faucher
oogroups.com>
To: cdcbaa@yahoogroups.com
Sent: Friday, July 20, 2018 4:03 PM
Subject: [cdcbaa] can a PC reopen a ch13/20 to get discharge
o strip the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge for 13s in a 20.
Now PC got hit with an humongous 1099 in 2017 from the bank and needs a copy of the discharge to avoid paying taxes.
His tax preparer doesn't believe he can just use the Ch 7.
if this is true, now that 13s in a 20 can receive a discharge, does anyone think I can reopen now and file the compliance form for a discharge?

The post was migrated from Yahoo.

If the secured claim existed at the time of the chapter 7, the debt would have been discharged in that case, which became a non-recourse secured claim in the chapter 13.
Law Office of Eric Alan Mitnick
21515 Hawthorne Boulevard, Suite 1080
Torrance, California 90503
Telephone: (310) 792-5864
Facsimile: (310) 347-4353
Email: MitnickLaw@aol.com,MitnickLaw@gmail.com

Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by the sender for any loss or damage arising in any way from its use.
The information contained in this email message and any attached files may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited. If you think that you have received this email message in error, please notify the sender by reply email, and delete the email message you received and all of the attached files.
***NOTICE OF EX PARTE HEARINGS WILL NOT BE ACCEPTED BY EMAIL***
.com>
To: cdcbaa
Sent: Fri, Jul 20, 2018 4:03 pm
Subject: [cdcbaa] can a PC reopen a ch13/20 to get discharge
I have a PC who filed a 7 and then a 13 to avoid foreclosure and to strip the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge for 13s in a 20.
Now PC got hit with an humongous 1099 in 2017 from the bank and needs a copy of the discharge to avoid paying taxes.
His tax preparer doesn't believe he can just use the Ch 7.
if this is true, now that 13s in a 20 can receive a discharge, does anyone think I can reopen now and file the compliance form for a discharge?
Craig J Beauchamp
If the secured claim existed at the time of the chapter 7, the debt would have been discharged in that case, which became a non-recourse secured claim in the chapter 13. Law Office of Eric Alan Mitnick
21515 Hawthorne Boulevard, Suite 1080
Torrance, California 90503
Telephone: (310) 792-5864Facsimile: (310) 347-4353
Email: MitnickLaw@aol.com, MitnickLaw@gmail.com
Although this email and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by the sender for any loss or damage arising in any way from its use. The information contained in this email message and any attached files may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited. If you think that you have received this email message in error, please notify the sender by reply email, and delete the email message you received and all of the attached files.
.AOLWebSuite .AOLPicturesFullSizeLink { height: 1px; width: 1px; overflow: hidden; } .AOLWebSuite a {color:blue; text-decoration: underline; cursor: pointer} .AOLWebSuite a.hsSig {cursor: default}
***NOTICE OF EX PARTE HEARINGS WILL NOT BE ACCEPTED BY EMAIL***
The post was migrated from Yahoo.

Reply-To: Craig J Beauchamp
X-Original-Return-Path: Craig J Beauchamp
To: cdcbaa@yahoogroups.com
X-Yahoo-Newman-Id: groups-system
I have a PC who filed a 7 and then a 13 to avoid foreclosure and to strip
the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge
for 13s in a 20.
Now PC got hit with an humongous 1099 in 2017 from the bank and needs a
copy of the discharge to avoid paying taxes.
His tax preparer doesn't believe he can just use the Ch 7.
if this is true, now that 13s in a 20 can receive a discharge, does anyone
think I can reopen now and file the compliance form for a discharge?
Craig J Beauchamp
I have a PC who filed a 7 and then a 13 to avoid foreclosure and to strip the 2nd mortgage lien but in 2013 San Diego judges didn't give discharge for 13s in a 20.Now PC got hit with an humongous 1099 in 2017 from the bank and needs a copy of the discharge to avoid paying taxes.His tax preparer doesn't believe he can just use the Ch 7.if this is true, now that 13s in a 20 can receive a discharge, does anyone think I can reopen now and file the compliance form for a discharge?Craig J Beauchamp

The post was migrated from Yahoo.