What happens in insolvency if one spouse is not, but the other is?
Date: Wed, 06/03/2009 - 08:23
For Credit Card debt settlement, what happens if one spouse is insolvent, but the other isnt?
I am trying to settle my cards, and know about the insolvency clause. However, if my spouse and I file joint, how would I alone be able to prove insolvency by IRS standards?
I am trying to settle my cards, and know about the insolvency clause. However, if my spouse and I file joint, how would I alone be able to prove insolvency by IRS standards?
In such cases I think that you need to file your 1099C form sepa
In such cases I think that you need to file your 1099C form separately. This is because if one of you are not insolvent, you need to pay tax on the amount forgiven under debt settlement (if the amount exceeds $600), while the other need not.
