Need advice on bankruptcy
Date: Wed, 04/22/2009 - 09:37
Here is my situation, I went thru a nasty seperation with a boyfriend of 8 years. We had bought a house during the time of this relationship (oregon doesn't have common law). We seperated almost 3 years ago and with the housing market taking a down turn, we've been unable to sale the house for what we owed, and when he stop contributing his share of the mortgage we were force to start a short sale before foreclosure. Good news is, the house is sell pending. I know we are going to have to claim the second mortgage as earned income next year. Which is fine with me cause we'd split it. But I have a feeling he is setting himself up for bankruptcy, he's stopped paying on all his bills. Now for me I've stayed good on my stuff. My Question is if he files bankruptcy am I going to have to claim all the second mortgage or can I just claim my half and not get in trouble from the IRS. the amount we are talking about is around $60K (is the full amount). Any advice would be greatly appreciated =) sorry for long story.
Thanks for time,
Rachel
Hi Rachel - That's quite an involved situation you have ther
Hi Rachel -
That's quite an involved situation you have there. I think the best thing you can do here is to contact a bankruptcy attorney and ask these questions. Most of them will give you a free consultation and answer your questions - they really can give you a better answer than most of us could, considering that your situation involves both a 2nd mortgage and bankruptcy.
Here are a couple links that talk about your issue: irs.gov/p
Here are a couple links that talk about your issue:
irs.gov/pub/irs-pdf/p4705.pdf
homesalessandiego.com/blog/mortgage-debt-forgiveness-passed-by-senate/
A BK attorney would be a place to start for feedback on your issue. You will need more definitive feedback from a tax pro though.
If your current mortgage debt is aquisition related, you may not owe tax on the forgiven portion based on The Mortgage Forgiveness Debt Relief Act of 2007.
Mileage may vary
