Creditors and Bankruptcy/tax on cancelled debt


I just received a tax notice for joint tax return for $1800 debt cancelled in 2011. I live in SC, husband has all assets in his name and income. I have the debts and no income or assets in my name. Debts are approximately $30,000 and over six years old. Are other creditors still likely to report cancelled debt to IRS? Have not filed for bankruptcy, as these should fall off credit reports within year. Should we file separate tax returns for this year to protect husband?  Thank you!

Hello Claire:

It's hard to understand from your question just what is happening here.   For example, I am not sure but when you say you received a joint tax return for cancelled debt, do you really mean that you received a 1099?    Also, the type of debt cancellation and other factors that you don't mention in your question make it impossible for anyone to fully answer your question without having more information.

This would be much easier talking about on the telephone and I will not charge you just to talk on the phone.    You are welcome to call me anytime you wish at this number:

915  261-3893

I look forward to talking to you if you decide to call.

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Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893


Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

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Have had well over a thousand bankruptcy clients during the past 30 years and have had many clients in civil lawsuits during the same time period

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