Although I posted an article on this topic of tax debts after foreclosure on July 12, 2011, this question still comes up fairly frequently. Therefore, another blog post on it is in order. However, this one will not be a carbon copy of the July 12 post.
I. The Five Exceptions To Cancellation Of Debt …
If you’re facing a foreclosure sale, filing for bankruptcy protection can at the very least postpone the sale, and in a chapter 13 it can make it possible to save the house.
In the October 12, 2011 Los Angeles Times, Alejandro Lazo reported on the latest surge in foreclosures – especially in California. This fits…
I. The Basic Idea: Cancellation Of Debt Income
Let’s first understand the basic idea with a simple non-real estate example. Suppose you owed me $100,000. I’m such a nice guy that I forgive the debt. It turns out that this becomes a mixed blessing because now the IRS and the Franchise Tax Board (FTB) both…
