Legal Question in Bankruptcy in New Jersey

My bank is offering to issue a "full forgiveness"of a debt on a Home Equity Line of Credit. However, if I accept the offer, the amount cancelled or forgiven will be

reported to the IRS. Is there a legal way to accept the offer and yet not trigger

a taxable event for me? Would a written letter from the bank stating that the forgiveness is not a "gift"be sufficient?

I have been successfully discharged in bankruptcy(Ch 7) of all my obligations

to this bank(1st mtg plus line of credit). Then why would I even need a forgiveness

of said debt?

Asked on 8/10/12, 12:29 pm

1 Answer from Attorneys

Charles Andersen Charles Andersen, Atty

Absolute Law If the second mortgage was included in the bankruptcy their would be no need for the banks offer, and can only confuse the issues.

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Answered on 8/10/12, 12:55 pm

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