Bankruptcy FAQ
1. What is a Chapter 7 bankruptcy and/or a Chapter 13 bankruptcy? Chapter 7 bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all dischargeable debts usually within four months. In […]
Bankruptcy Court Finds IRS Form 1099-C Does Not Prevent Collection of Debt
A bankruptcy court in Pennsylvania recently ruled on an issue that has been a frequent source of confusion to those working with short sales. The issue is whether a 1099-C issued by a lender to a borrower automatically relieves the borrower of liability for the debt. In other words, is a creditor prevented from pursuing […]