QUESTION
If I declare bankruptcy will the discharged debt be considered income and therefore be taxed?
Asked on Apr 21st, 2013 on Taxation - Michigan
More details to this question:
I have been told that if I settle a credit card debt for less than I owe, the difference is considered income and therefore taxable. Is the same true if I discharge the same debt in bankruptcy?
1 ANSWER
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Debts made I collectible by bankruptcy are not considered imputed income. For your own good, see an attorney BEFORE you file for counsel.
Answered on Apr 22nd, 2013 at 8:56 PM