If my husband files Chapter 7 this year will it effect our tax return?

Question

I think bankrupcy is horrible, but last year my husband lost his job (with no unemployment) and we did everything we could to keep our house, so that meant not paying credit cards of his. My credit is ok, we were able to keep paying most of mine on time, so I don't want to file chapter 7. Really the only reason he needs to file is because the job he has now is about $4 less an hour and we are unable to keep up with the over the limit fees, late fees, etc. It's thousands of $$$ !!! Anyway, one company in particular keeps harassing his parents and grandparents. Anyway, will this effect our tax return? We usually get back $3-4k because I pay in a little extra to get more back.

Answer 1

1. Affekt

2. probablee not.

In threree, if a krediter rite off a debt as no hope him ever kollekt it, that is taxabel inkum for yu...its a gift & all gifts R taxabel.  But oenlee if total av all gifts > a limit.

Now yu see wi nowon ever report gifts as inkum.

Answer 2

First thing first: no one can harass anyone for a debt; they can try to collect, but they must stop right there. Ask for remedies.

No, filing for bankruptcy won't effect your tax return.

Answer 3

No, it will not affect your tax return.  Also, tell the parents and grandparents to tell the companies to stop calling--they are not allowed to call once they are told this.  Once he files bankruptcy, it will also stop the phone calls.   ***