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Posted Feb 14th, 2012
Can debt come back as income after bankruptcy?



Legal Topic Area: Bankruptcy in AL

I believe you are asking if debts discharged (forgiven) in bankruptcy is taxable income. The answer is no. Section 108 of the Internal Revenue Code excludes from income any debt discharged in bankruptcy. However, certain tax attributes, such as net operating loss carryforwards, may be reduced by the amount discharged.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

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Answered on Feb 14th, 2012 at 1:54pm