ILLMAS Posted March 3, 2009 Report Share Posted March 3, 2009 One of my client filed for bankruptcy and he included a rental property in the filing, however the bank the holds the mortgage asked him to remove the rental property from the bankruptcy filing and they (the bank) would take over the property and sell it. To me it sounds more like a foreclosure, but the client insists it;s not. Has anyone ever heard something like this before? I did make my client aware if it is indeed a foreclosure and the bank sells the property he will get a 1099C. Thanks Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 3, 2009 Report Share Posted March 3, 2009 Your client should have an attorney to answer that question. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 4, 2009 Report Share Posted March 4, 2009 Yes, have him ask his bankruptcy attorney if he should do this. But Bankruptcy attorneys are notoriously bad at tax law, so do not rely on them for that. If he is in bankruptcy, however, he should have the insolvency defense on the debt, which ever way it goes. The Bank's goal is to get it closed out faster, most likely. Quote Link to comment Share on other sites More sharing options...
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