Creditors and Bankruptcy/1099-C and insolvency

Advertisement


Question
If I believe I am insolvent, how do I list my portion of my home on the insolvency worksheet? My father and I each own a 50% share of my home. There is an outstanding mortgage, but the appraised value is more than we owe. Do I claim half the principal as debt and half the appraisal as an asset?

I live in South Carolina which is an equitable distribution state. This seems like the most logical way to complete the worksheet, but I want to get some guidance.

Thank you.

Answer
Hello Sherri:
Coincidentally, I just had a case involving the insolvency worksheet in the context of a person that had to file one to avoid having to pay taxes on forgiven debt.     Is that the purpose of your question?      If it is, please call me and I can explain to you in more detail how this works and whether you have more than enough equity (or not) to avoid similar liability.    On the other hand, you may be asking about some thing else entirely.    Neither I nor anyone else can give you a good answer to this without knowing more information than you have stated in your question.    It would be much easier to talk on the telephone and I will not charge you just to talk on the phone.   You are welcome to call me at any time at this number.     



Jack Hall, J.D.
915  261-3893

Creditors and Bankruptcy

All Answers


Answers by Expert:


Ask Experts

Volunteer


Bankruptcy Services

Expertise

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

Experience

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

Publications
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

Education/Credentials
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

Past/Present Clients
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

©2016 About.com. All rights reserved.