If the 1099-A form is the correct form, are we protected by this new Mortgage Relief Act? Here’s the info from my 1099-A form:
Principal outstanding $ 76,396.22; FMV $ 65,450.00; Was borrower personally liable for repayment of this debt? “Yes” (how can this be “yes” when it was discharged in our BK-7?!) With this info., what needs to be done on our income taxes this year? Which discharge box w/b the correct one to check on the 982 form in our case?

Sorry about the tons of questions, but Wells Fargo just seems to try to jerk us around at every turn, no matter how hard we tried to work things out with them. They’ve got my “dander” up. Thank you!

Additional Details
Re: Reaffirmation
We signed a reaffirmation form w/ our attorney that they sent to Wells Fargo during the beginning stages of our BK-7 filing. Wells Fargo never responded to that form, thus not taking us up on our reaffirmation offer. Our loan w/ them even shows up on our credit report as “Discharged in Ch. 7 Bankruptcy”. The reaffirmation definitely never happened. And Wells Fargo’s “tax team” is trying to say that the 1099-A form is the correct form because of the fact that we abandoned the property. I am so tired of Wells Fargo’s bullying me on this that I feel like trying to sue them over the whole issue. Just another tidbit that our BK atty brought up– when the foreclosure was filed, an “in rem” judgment is what was filed, which tells her also that we should not have been mailed any sort of 1099 form from Wells Fargo.

Best answer:

Answer by Charles G
From the IRS Pub 4681http://www.irs.gov/publications/p4681/ch01.html#d0e437

Qualified Principal Residence Indebtedness

You can exclude canceled debt from income if it is qualified principal residence indebtedness. Qualified principal residence indebtedness is any debt incurred in acquiring, constructing, or substantially improving your principal residence and which is secured by your principal residence. Qualified principal residence indebtedness also includes any debt secured by your principal residence resulting from the refinancing of debt incurred to acquire, construct, or substantially improve your principal residence but only to the extent the amount of debt does not exceed the amount of the refinanced debt.

But, if you really want to report the thing, put it on a Sch-D, showing the (personal, nondeductible) loss. You will need to know the cost basis of your house for that.

Note: Wells Fargo is doing that to get the debt/bad loan off their books. It is not because of any personal malice. And, it might not have been an oversight for them not to reaffirm the loan.

What do you think? Answer below!

Best answer:

Answer by Tato
a program with a solution to help pay-off your dept.

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Greece cuts protection for butchers, bakers, music makers
A vendor sells bread to activists at pre-election rally in central Athens on October 2009. Greece launched on Monday deep reforms of 136 service occupations from breadmaking to butchering to end restrictive …
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Greece cuts protection for butchers, bakers, music makers
(ATHENS ) – Greece launched on Monday deep reforms of 136 service occupations from breadmaking to butchering to end restrictive practices as the cabinet met on new measures to fight a second debt crisis.
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Personal bankruptcy is a legal way to give people with overwhelming debt a fresh financial start. Many people do not realize that there are five types of bankruptcy options available under the U.S. Bankruptcy Code; however, for most consumers there are really only two viable options; Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 bankruptcy is entitled Liquidation: In a Chapter 7 bankruptcy, a court-supervised procedure occurs during which a court-appointed trustee collects the assets of the debtor’s estate, converts them to cash for repayment, and makes all necessary distributions to the debtor’s creditors; however this is all done within the debtor’s right to retain certain exempt property. Traditionally, there is little or no nonexempt property in a chapter 7 bankruptcy. Due to this fact, there may not be an actual liquidation of the debtor’s assets. In this case, it is called a “no-asset bankruptcy.” It is important to realize that a creditor that is trying to collect on an unsecured claim will only get a distribution from the bankruptcy estate if the case is an “asset bankruptcy” and the creditor can provide proof of their claim with the bankruptcy court. In almost all chapter 7 bankruptcies, the debtor will be grated a discharge that releases them of personal liability for most dischargeable debts. The entire process normally takes just a few months from the time the bankruptcy petition is filed.

Chapter 13, bankruptcy is entitled Adjustment of Debts of an Individual with Regular Income: A chapter 13 bankruptcy is traditionally used for people who have a regular source of income or a full-time job. For many people, chapter 13 is preferable to chapter 7 because it allows the debtor to keep some assets. A chapter 13 bankruptcy allows the debtor to repay creditors over time. This time traditionally varies from three to five years. This type of repayment proposal takes place at a confirmation hearing. During this confirmation hearing, the court will either approve or disapprove the debtor’s repayment plan. This decision largely depends on whether the repayment plan meets the Bankruptcy Code’s requirements for confirmation. In a Chapter 13 bankruptcy the debtor is usually able to remain in control of their possession and property while making payments to creditors; however, payments are made via a court trustee. Unlike chapter 7 bankruptcy, the debtor does not receive an immediate discharge of their debts. Under chapter 13 bankruptcy, the debtor must complete the repayment plan before the discharge is granted; however, the debtor is protected from lawsuits, garnishments, and other creditor action while the plan is in effect.

It is important to remain cognizant of the fact that not all debts are discharged under bankruptcy. The debts that are able to be discharged will vary under each chapter of the Bankruptcy Code. However, the most common types of non-dischargeable debts are tax claims, debts that are not presented by the debtor to the court while filing for bankruptcy, debts for spousal or child support or alimony, debts to governmental units for fines and penalties owed to government entities, debts for personal injury caused by the debtor’s operation of a motor vehicle while driving intoxicated, debts for willful and malicious injuries to person or property, debts for government funded or guaranteed educational loans, and debts for certain condominium or cooperative housing fees.

In order to file for bankruptcy, you must file a petition in federal bankruptcy court. You must file a statement of assets and liabilities as well as schedules listing of your creditors. Once you have finished filing bankruptcy, your creditors can no longer take action against you to collect discharged debts.
Negative Aspects of Bankruptcy
In chapter 13 bankruptcies, you may end up paying back 50% or more of your current debts. Additionally, if you miss a regularly scheduled payment at anytime during your chapter 13 bankruptcy repayment plan, you could end up in violation of the court and forced to repay all the debt!

One of the most difficult parts of bankruptcy is learning to live with the fact that filing bankruptcy limits your personal spending to items that the court considers absolutely necessary. In most cases, debtors do not complete their chapter 13 bankruptcy repayment plans. Most people filing chapter 13 bankruptcies think they will be able to complete their repayment plan; however, only about a third of them actually do. Additionally, chapter 7 bankruptcy may stay on your credit longer than a chapter 13 bankruptcy. This time ranges from 7-10 years for most people. Many people do not realize that if you own a home with a sizable amount of equity, have a fair amount of assets to protect, or have co-signers on a loan, you most likely will not be able to file chapter 7 bankruptcy under current law. Now that the new bankruptcy legislation has passed, it will be even more difficult to file for bankruptcy.

Many people think that filing bankruptcy is the silver bullet that will fix all of their debt and credit related problems; however, filing bankruptcy is the worst thing you can do to your credit. Most lending institutions will consider your bankruptcy when evaluating you for a personal loan even after the bankruptcy has expired. Qualifying for a loan after filing for bankruptcy can be very difficult and could cost you considerably more than a person that has not filed for bankruptcy.

It is understood that some situations will require you to file for bankruptcy. However, you should avoid bankruptcy if at all possible. A good debt settlement company can help eliminate most, if not all, of your unsecured debt so that you do not have to file for bankruptcy. If you require additional information on the subject of bankruptcy you may want to contact a bankruptcy attorney in your area.

To learn more about debt relief and how to get started, please visit Debt Relief.bz

Best answer:

Answer by Cristy C
Depending on what your income and family size is they allow some exemption talk to a lawyer that does free consultations and he can give you specifics

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Are you facing bankruptcy and are scared of all the legal stuff that you do not quite understand. You will need a bankruptcy attorney who can solve your credit problem and save you from possible fiscal downfall.

Lawyers who specialize in dealing with bankruptcy cases are known as bankruptcy attorneys. Finding such a lawyer is now easier than before, you will need to log on to the internet and simply use websites that provide you a list of attorneys and lawyers according to your geographical region. This helps you locate lawyers quite easily and you will end up saving a lot of time.

Let alone single lawyers, you can find firms that deal in bankruptcy so you will have a complete organization backing you and serving your purpose for solving your financial crisis problem. These attorneys have been included in the list because they are one of the best in that region. You can not just trust these people, you can also check out about them with their previous clients who have consulted them about their financial problems.

Bankruptcy attorneys can save you from imprisonment, auctioning of your assets, your credit rating from falling down drastically, etc. these attorneys are well versed with the legal books that concern the personal finance laws. These attorneys also have contacts with all credit companies, therefore are well equipped to help you out with your credit problems.

What Does A Bankruptcy Attorney Charge?

Your bankruptcy attorney will charge you certain amount of commission, this too will be payable in parts if you cannot afford it at that point of time. You can decide with the attorney how much needs to be payable and at what time and date. You can build your positive credit rating once you are out of the financial crisis.

Finding bankruptcy attorneys need not be through someone you know. Finding them online can protect yourself and not let your financial problems be known to the world. Online you can save this embarrassment and can work secretly without giving stress to your family.

Online through these websites you can check out reputation and experience of your chosen attorney. This will help you remain discreet, you can also check out openly provided information by prior clients who have used services of this attorney. Bankruptcy attorneys will also help you in reducing rate of interest on your accrued credit card bills, help you in avoiding complete payment of your credit overdue, instead you can reach a settlement and pay only some part of the loan instead of paying the complete amount. This method has saved a great many families from reaching complete bankruptcy.

You can use services also for understanding the law for personal finances better, and also for finding out whether you are being outsmarted by the finance companies as regards to interests. This will help you in understand and saving your money at the same time not being taken by the finance companies for a ride. Bankruptcy attorneys can help you save yourself from financial disaster. A good bankruptcy attorney can save you a lot of stress and grief.

Ryan Luv

http://www.articlesbase.com/

A good bankruptcy attorney can save you a lot of stress and grief.

Can I go bankrupt myself or do I need a bankruptcy lawyer? This is a question many people wonder when considering filing for bankruptcy. There are a lot of changes to the bankruptcy laws so depending on your situation, it might be a wise thing to do. However, there are a few situations where you don’t really need one.

Here’s a tip that might help you decide whether using a bankruptcy attorney is a good idea for you. Did you know that many law firms will give you a free initial consultation? That’s right. You can sit down, talk about your situation and get your questions answered before you pay a dime. It doesn’t hurt to call a law firm, explain your situation, and ask to talk to someone (and make sure it’s a free first consultation)

If you have zero assets, very little income and are in a situation where no family or spouse is involved, you can probably file for Chapter 7 bankruptcy yourself. This is called “pro se”. It is a fairly simple process.

However, if you have family, dependents, and a lot of assets, you probably want the help from a law firm that specializes in this type of arrangement. If you own a home you would be foolish to try and do this alone.

And, if you are filing Chapter 13 bankruptcy you need a bankruptcy lawyer to assist you.

How Can I Afford To Pay For A Bankruptcy Lawyer?

There are also cases where your lawyers fees will be paid out of the proceeds of your bankruptcy. In this case your creditors get a little less money and the firm representing you gets paid from the disposition of your assets.

Considering this information, we suggest you at least talk to a bankruptcy lawyer about their services, and your options.
To answer the question, “Do you need a bankruptcy lawyer?” You won’t know for sure until you have a consultation and talk to them. You might even consider talking to a few bankruptcy lawyers before you make your final decision. If you are going to use a bankruptcy lawyer make sure it’s a person you can relate to.

The first consideration about deciding to file for bankruptcy is to determine whether your situation is a fit for a Chapter 7 or a Chapter 13. It’s important to note that the laws regarding filing bankruptcy, and then being discharge, are very strict. When you file for bankruptcy, if you don’t follow the guidelines exactly you may not be discharged. And, not all debts can be erased by bankruptcy these days. You can usually get a free consultation from a bankruptcy lawyer to get some expert advice.

Let’s discuss the difference between a Chapter 7 filing and Chapter 13 bankruptcy. Most Chapter 7 processes involve having the debtor make some payments to their creditors. Unless you have zero income, and no assets, you might have to make some payments. Chapter 13 is a much more complicated process and is generally the choice if you have real physical assets and some income. In most cases, you will be required to fill out some paper work and a “means test” will be done. This test is to determine your debt load, and your ability to repay. A bankruptcy firm or attorney can help you with a quick means test and then advise you as to your best option.

Can Anyone File For Bankruptcy?

Here are the few requirements you must meet if you with to file:

- You have to be at least 18 years of age.
- To file in US courts you must be a US citizen (even if you are currently living here)
- Or, if you are conducting business in the US, you can file in a US court
- Or, if you are a US real estate/property owner you can file in the US court

Can you file for bankruptcy more than once?

If you go through a Chapter 7 bankruptcy you are not allowed to file again for 8 years. And generally, if you go through a Chapter 13 bankruptcy you must wait at least 6 years. There are a few special exceptions for unusual cases.

What should I do before I file?

Our suggestion is to first inform yourself of your options. Second, go have a free initial consultation with a bankruptcy attorney. Many times a professional can help you optimize your “means test”. By preparing and planning for your “means test” you can reduce the likelihood that you’ll have to make significant payments while in the bankruptcy process.

Unfortunately, many of the people who follow the “do it yourself” method actually end up paying more during their bankruptcy. A good lawyers or firm that specializes in this process can actually save you money in the long run. Call around an try and get a few free consultations. These firms can be a wealth of good information when deciding how to file for bankruptcy.