Government refinancing of home loans

2seaoat wrote:give you an education you're sorely lacking. And lastly,bankruptcies on credit cards are taxable income. That's a fact.


You are a fool. I am a bigger fool thinking that you were not a fool. Sorry your comprehension is sadly lacking to understand this subject. A debtor who discharges a credit card debt in bankruptcy owes no tax on the forgiven amount of the debt.....zero. Also, as we were talking about foreclosed properties.....if the debtor files a bankruptcy, the deficiency judgment on the property is also discharged, and that forgiven debt is also.....not taxable.

You are clearly delusional about what you understand, and how you can make other people understand things which you have neither the training or aptitude to understand yourself. The worse part if you were telling family and friends that they will have to pay taxes on the discharged debt in bankruptcy you are hurting people who are as ignorant as you are......fortunately, if this forum is any indication....they to would come to my conclusion probably years ago.

Ah...now we see where the rubber meets the road,Seaoat.For the final time and I won't say this again. I never mentioned a discharged bankruptcy.I never said you have to pay taxes on discharged debt. You can't get that through your head. Never did I mention a discharged bankruptcy. I said when you bankrupt on your credit cards.FYI info. again when you file bankruptcy you can't just file on the debts you want to pay.You must list all of them and then you get a reaffirmation on the debts you want to keep.That means you just can't discharge debt on credit cards in a bankruptcy... so I know what I said. You keep twisting the word bankruptcy as a legal filing. As for the deficiency judgement,if they put a lien on your property the bankruptcy does not discharge the lien even if the debt is discharged. Credit card companies who get a judgement before you file bankruptcy can put a lien and do on your property.You must file a separate motion to get the judge to void the lien. I have refrained from calling you ignorant as you have me but you're not astute in bankruptcy.You only think you are.

Let me clarify the "bankruptcies on credit cards are taxable income" They are taxable if they are $600 or more to be precise. Not discharged debt through a bankruptcy filing-big difference.

I said when you bankrupt on your credit cards.FYI info. again when you file bankruptcy you can't just file on the debts you want to pay.You must list all of them and then you get a reaffirmation on the debts you want to keep.That means you just can't discharge debt on credit cards in a bankruptcy...

Ramblings of a fool. Do you think everybody on this forum is ignorant of your charade? You get beaten like a drum in a logical discourse and you then change the subject when it becomes apparent you do not understand something, and then argue with yourself about something you never said.....gee lets hear your expertise on Conn. involuntary commitments on the mental health call, or your expertise on duty to report an alleged abuse.......simply clueless.....you miss core concepts and flail about like a docked fish ready to be cleaned for dinner. There is no tax due when a debtor discharges an unsecured credit card debt in bankruptcy.....none, and now you are talking about reaffirmations.....you are a fool, and I show restraint when somebody is simply ignorant, but you are a fool who actually think you understand this subject.....you do not, and you were wrong in your first response, your second response, and your third response.....now you are attempting to change the subject to show that you have some familiarity with the nomenclature of a bankruptcy.....but you simply make yourself look more foolish. The correct answer was yes Seaoat, you are correct that the IRS does not recognize credit card debt discharged in a bankruptcy as income.....and I am sorry to waste your time with my inane ramblings and ignorance......oh.....and by the way Mr. Seaoat a reaffirmation does not forgive a debt so I am terribly sorry to bring up this irrelevant factor when talking about debt which is not paid back being taxed by the IRS......duh. You are showing signs of loose wires, or stress in your life to be so random and utterly clueless, and I should be more patient and considerate if the information you are botching was not so important to people who may read this forum and be facing financial difficulties.....you do a great disservice to yourself and others talking about stuff you are clueless about.

Let me clarify the "bankruptcies on credit cards are taxable income" They are taxable if they are $600 or more to be precise. Not discharged debt through a bankruptcy filing-big difference.

Just more rambling nonsense........completely random and a smokescreen for the central concept you got wrong from the beginning.....bankruptcies on credit cards are taxable income....they are not and no matter how many time you repeat this foolishness, not one American will pay a dime of income tax on a credit card debt ran through a bankruptcy.....none. You got it wrong and now you are trying to create a distinction between bankruptcies on credit cards.........not discharged debt through a bankruptcy filing........Stuuuuuupid on Steroids. You thought you understood this and now I have to listen to disjointed concepts and terms in bankruptcy to now show that you understand this central tenet of our constitution and statute........you again are simply clueless. Ignorance can be corrected.....stupid is permanent. Foolishness is being stupid and not having the intelligence to distinguish that you are stupid. We all can be ignorant at times, but you are beginning to make an amazing track record of foolishness.

Ramblings of a fool. Do you think everybody on this forum is ignorant of your charade? You get beaten like a drum in a logical discourse and you then change the subject when it becomes apparent you do not understand something, and then argue with yourself about something you never said.....gee lets hear your expertise on Conn. involuntary commitments on the mental health call, or your expertise on duty to report an alleged abuse.......simply clueless.....you miss core concepts and flail about like a docked fish ready to be cleaned for dinner. There is no tax due when a debtor discharges an unsecured credit card debt in bankruptcy.....none, and now you are talking about reaffirmations.....you are a fool, and I show restraint when somebody is simply ignorant, but you are a fool who actually think you understand this subject.....you do not, and you were wrong in your first response, your second response, and your third response.....now you are attempting to change the subject to show that you have some familiarity with the nomenclature of a bankruptcy.....but you simply make yourself look more foolish. The correct answer was yes Seaoat, you are correct that the IRS does not recognize credit card debt discharged in a bankruptcy as income.....and I am sorry to waste your time with my inane ramblings and ignorance......oh.....and by the way Mr. Seaoat a reaffirmation does not forgive a debt so I am terribly sorry to bring up this irrelevant factor when talking about debt which is not paid back being taxed by the IRS......duh. You are showing signs of loose wires, or stress in your life to be so random and utterly clueless, and I should be more patient and considerate if the information you are botching was not so important to people who may read this forum and be facing financial difficulties.....you do a great disservice to yourself and others talking about stuff you are clueless about.---Seaoat



That sir is a classic post! Thank You

2seaoat wrote:Let me clarify the "bankruptcies on credit cards are taxable income" They are taxable if they are $600 or more to be precise. Not discharged debt through a bankruptcy filing-big difference.

Just more rambling nonsense........completely random and a smokescreen for the central concept you got wrong from the beginning.....bankruptcies on credit cards are taxable income....they are not and no matter how many time you repeat this foolishness, not one American will pay a dime of income tax on a credit card debt ran through a bankruptcy.....none. You got it wrong and now you are trying to create a distinction between bankruptcies on credit cards.........not discharged debt through a bankruptcy filing........Stuuuuuupid on Steroids. You thought you understood this and now I have to listen to disjointed concepts and terms in bankruptcy to now show that you understand this central tenet of our constitution and statute........you again are simply clueless. Ignorance can be corrected.....stupid is permanent. Foolishness is being stupid and not having the intelligence to distinguish that you are stupid. We all can be ignorant at times, but you are beginning to make an amazing track record of foolishness.

[quote="PBulldog2"]

2seaoat wrote:Let me clarify the "bankruptcies on credit cards are taxable income" They are taxable if they are $600 or more to be precise. Not discharged debt through a bankruptcy filing-big difference.

Just more rambling nonsense........completely random and a smokescreen for the central concept you got wrong from the beginning.....bankruptcies on credit cards are taxable income....they are not and no matter how many time you repeat this foolishness, not one American will pay a dime of income tax on a credit card debt ran through a bankruptcy.....none. You got it wrong and now you are trying to create a distinction between bankruptcies on credit cards.........not discharged debt through a bankruptcy filing........Stuuuuuupid on Steroids. You thought you understood this and now I have to listen to disjointed concepts and terms in bankruptcy to now show that you understand this central tenet of our constitution and statute........you again are simply clueless. Ignorance can be corrected.....stupid is permanent. Foolishness is being stupid and not having the intelligence to distinguish that you are stupid. We all can be ignorant at times, but you are beginning to make an amazing track record of foolishness.

An excellent encore to a previous absolute gem! I have new found respect for you Mr. Oats.

On edit...if I ever have to have my ass handed to me on here I want Oats to do it.

2seaoat wrote: I said when you bankrupt on your credit cards.FYI info. again when you file bankruptcy you can't just file on the debts you want to pay.You must list all of them and then you get a reaffirmation on the debts you want to keep.That means you just can't discharge debt on credit cards in a bankruptcy...

Ramblings of a fool. Do you think everybody on this forum is ignorant of your charade? You get beaten like a drum in a logical discourse and you then change the subject when it becomes apparent you do not understand something, and then argue with yourself about something you never said.....gee lets hear your expertise on Conn. involuntary commitments on the mental health call, or your expertise on duty to report an alleged abuse.......simply clueless.....you miss core concepts and flail about like a docked fish ready to be cleaned for dinner. There is no tax due when a debtor discharges an unsecured credit card debt in bankruptcy.....none, and now you are talking about reaffirmations.....you are a fool, and I show restraint when somebody is simply ignorant, but you are a fool who actually think you understand this subject.....you do not, and you were wrong in your first response, your second response, and your third response.....now you are attempting to change the subject to show that you have some familiarity with the nomenclature of a bankruptcy.....but you simply make yourself look more foolish. The correct answer was yes Seaoat, you are correct that the IRS does not recognize credit card debt discharged in a bankruptcy as income.....and I am sorry to waste your time with my inane ramblings and ignorance......oh.....and by the way Mr. Seaoat a reaffirmation does not forgive a debt so I am terribly sorry to bring up this irrelevant factor when talking about debt which is not paid back being taxed by the IRS......duh. You are showing signs of loose wires, or stress in your life to be so random and utterly clueless, and I should be more patient and considerate if the information you are botching was not so important to people who may read this forum and be facing financial difficulties.....you do a great disservice to yourself and others talking about stuff you are clueless about.

I am cognizant of your condition,Seaoat and have to assume your on a lot of medications that are apparently messing w/ your comprehension but you have made some allegations that are not correct.First,I'll address the Fl.abuse and Fl. Baker Act law.I never said anything about the Conn. committment law. Don't know anything about that. Are you saying what I said was incorrect regarding these? I'd like you to clarify what was incorrect as I know that your full of shit, if your saying that. Secondly, you're saying all what I said about bankruptcy is untrue? My first, second and third response is untrue? Your losing your mind.It most certainly is true and anybody can go look it up.The problem w/ you is you think you are so superior in your knowledge and when you are challenged you go ballistic and start calling people ignorant and clueless when in fact you are misinterpreting what was said. I said a lien a property does not discharge the lien when you get a discharge. You have to file a motion to avoid the lien after you get a discharge to get the lien off your property or when you sell the property the lien will have to be paid. As for the reaffirmations, so you're saying that's not true either? Really? A reaffirmation does not forgive a debt.All your doing is reaffirming the debt and paying it. If you have a car loan and want to keep the loan,you have to list that as well as all your other debts and then do a reaffirmation w/ the car lender agreeing to pay it. The debt is discharged in the bankruptcy and you have to return the car unless you reaffirm the debt. So I'm not in the least moved by your false insinuations I am giving incorrect info. You are the one who is making a fool out of himself by your ridiculous assertions this is not true and I said a discharged debt is taxable. Never said that at all. I know better than that.

[quote="Gunz"]

PBulldog2 wrote:

2seaoat wrote:Let me clarify the "bankruptcies on credit cards are taxable income" They are taxable if they are $600 or more to be precise. Not discharged debt through a bankruptcy filing-big difference.

Just more rambling nonsense........completely random and a smokescreen for the central concept you got wrong from the beginning.....bankruptcies on credit cards are taxable income....they are not and no matter how many time you repeat this foolishness, not one American will pay a dime of income tax on a credit card debt ran through a bankruptcy.....none. You got it wrong and now you are trying to create a distinction between bankruptcies on credit cards.........not discharged debt through a bankruptcy filing........Stuuuuuupid on Steroids. You thought you understood this and now I have to listen to disjointed concepts and terms in bankruptcy to now show that you understand this central tenet of our constitution and statute........you again are simply clueless. Ignorance can be corrected.....stupid is permanent. Foolishness is being stupid and not having the intelligence to distinguish that you are stupid. We all can be ignorant at times, but you are beginning to make an amazing track record of foolishness.

An excellent encore to a previous absolute gem! I have new found respect for you Mr. Oats.

On edit...if I ever have to have my ass handed to me on here I want Oats to do it.

The only problem is... he's wrong. He falsified the statement into something else and went on a rant saying I said something I didn't. He's made a complete ass of himself.Then you have people like you who come on and think he's made someone look like a fool when you have no clue as what he's saying is right or wrong. Let's see how many ass's he can take w/ him? Two so far.

The thread speaks for itself......there is not one red cent owed in a bankruptcy on credit cards. I take no pride in calling someone a fool, but when the misinformation could adversely impact a person facing financial stress......it is inexcusable to provide incorrect information. My intent is never to embarrass anybody on this forum, unless of course they are a fool, and I most certainly will assist them in making that conclusion abundantly clear.

That was never said,Seaoat. You made allegations in your last post you haven't addressed. Are you going to ignore those now or man up and admit they were false?

2seaoat wrote:The thread speaks for itself......there is not one red cent owed in a bankruptcy on credit cards. I take no pride in calling someone a fool, but when the misinformation could adversely impact a person facing financial stress......it is inexcusable to provide incorrect information. My intent is never to embarrass anybody on this forum, unless of course they are a fool, and I most certainly will assist them in making that conclusion abundantly clear.

For you,Seaoat.You made an ass of yourself. Insolvency=bankrupt.LOL!


Can You Claim Insolvency for Credit Card Debt Settlements?
by Rebecca Lake, Demand Media

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Settling old credit card debts can potentially have serious tax implications.

Settling old credit card debts can potentially have serious tax implications.

If you find yourself drowning in credit card debt, you might wonder what your options are for paying it off. While some debtors opt for filing bankruptcy, doing so can result in long-term negative consequences, including a poor credit score. Another alternative is debt settlement, which can help you clear your debt much more quickly. Just be aware that claiming insolvency for credit card debt can have tax consequences.

Are you going to ignore those now or man up and admit they were false?

Don't you know that T has declared me a pussy, and now if I do not indulge you in cover your asz backtracking I am not a man......oh well, the definition of insanity is doing the same thing over and over again......and expecting a different result.......I will not indulge your attempt to shift this discussion from the central tenet of your mistake.......The IRS will not seek any tax from a debtor who bankrupts his credit cards......nor will I become insane talking with someone who simply has a little bit of knowledge, but stumbles over simple concepts over and over again from one subject to the next. I honestly thought you were joking when you first posted that bankrupt credit card debt would be taxed......I really did think you were intelligent and were just playing to see if anybody else understood this.....I was totally caught off guard by your ignorance and persistence in making sure everybody knew the same........then your attempts to shift off the core concept once you learned you were wrong......classic.

More:

A reaffirmation agreement in bankruptcy is a new contract signed between you and a lender that reaffirms your debt and personal liability for the obligation. Such an agreement is usually executed for secure property such as an automobile, a boat, a recreational vehicle (such as a motor home) or an airplane. Before signing an agreement of this type, it is a good idea to have it checked over by your attorney as it is a binding legal document. The reaffirmation agreement must also be approved by the court. You can revoke it within 60 days after signing.

A secured debt consists of two parts, and each part is treated differently in Chapter 7 bankruptcy.

Your personal liability for the debt, which obligates you to pay back the creditor. Bankruptcy wipes out your personal liability for the debt, assuming the debt qualifies for the bankruptcy discharge. This means the creditor cannot later sue you to collect the debt.
The creditor’s legal claim (lien or security interest) on the collateral for the debt. A lien gives the creditor the right to repossess the property or force its sale if you do not pay the debt. If the collateral is unavailable, the lender can sue you for the value of the collateral. A lien sticks with the property even if you give the property to someone else. Bankruptcy, by itself, does not eliminate liens. However, during bankruptcy, you may be able to take additional steps to eliminate, or at least reduce, liens on collateral for security interests. (To learn more, see Avoiding Liens in Bankruptcy.)

Because liens survive Chapter 7 bankruptcy, if you stop making payments on a secured debt after bankruptcy, the lender can repossess the collateral. The lender, however, cannot sue you for a deficiency (the difference between what you owe and the value of the collateral) because your personal obligation for the debt is gone (assuming the debt was discharged).


So I was wrong,Seaoat? I think you owe me an apology.

I really don't know that much about bankruptcy. What I do know is a friend had to file bankruptcy because of her husband. They were getting a divorce and she pulled the financials she found out they were $250,000 in debt. Part was their house they owed $150,000 after a huge down payment...he had stopped paying the mortgage and the rest was credit card debt. He was stationed in another city and all the bills went to his oot address. She had no clue and later found out he had also taken out credit cards in her name....he even charged a 4 year college education. So, besides the house all debt was credit cards. The bankruptcy wiped out all debt and they chose to let the house go.

2seaoat wrote: Are you going to ignore those now or man up and admit they were false?

Don't you know that T has declared me a pussy, and now if I do not indulge you in cover your asz backtracking I am not a man......oh well, the definition of insanity is doing the same thing over and over again......and expecting a different result.......I will not indulge your attempt to shift this discussion from the central tenet of your mistake.......The IRS will not seek any tax from a debtor who bankrupts his credit cards......nor will I become insane talking with someone who simply has a little bit of knowledge, but stumbles over simple concepts over and over again from one subject to the next. I honestly thought you were joking when you first posted that bankrupt credit card debt would be taxed......I really did think you were intelligent and were just playing to see if anybody else understood this.....I was totally caught off guard by your ignorance and persistence in making sure everybody knew the same........then your attempts to shift off the core concept once you learned you were wrong......classic.

I wasn't wrong. You know the statement I made. You assumed I meant a bankruptcy filing. I did not. I used the word bankrupt which means to have no funds. I've already explained that. You then went on to say I was wrong about reaffirmations and liens on property and now you're failing to address those false statements because you probably went and looked it up and saw you were WRONG! So are you going to continue to say I was wrong about my second and third statements or are you going to have the INTEGRITY as you say... to apologize?

The bankruptcy wiped out all debt and they chose to let the house go.


That is correct. Now Dreams wanted folks to believe that the cancellation of that debt in a bankruptcy resulted in income, and that the IRS would tax you on that debt. She posted incorrect information that bankrupted credit cards can be taxed.....she was wrong, and when I provided her with the IRS regulations showing clearly that she was wrong.....she began her typical backtracking, and changing the subject. She is now arguing with herself after posting something which has no relevancy to the core issue that after folks bankrupt their credit cards......they have no tax liability. She simply is a fool, who rather than admitting she was wrong, and that in fact a person like the situation you gave owe no taxes having filed bankruptcy....but now she rambles from topic to topic.....cut and paste.....to prove that she is not a fool.......well.......I do not have to prove a thing.....I can read english.......I can comprehend IRS regulations, and I have repeatedly exposed her deficiencies in so many areas where she tries to be an expert......so if you are facing credit card debt and you are worried that after filing a bankruptcy you will owe the IRS....please ignore Dreams nonsense.....and talk to a professional who will tell you that you owe no taxes.

Dreamsglore wrote:

Here Seaoat,maybe you'll understand this. I have misjudged your level of intelligence. I never said anything about filing a bankruptcy.Take Chapter 7 out of the equation.If you bankrupt on credit cards, in other words don't have the money to pay them and make an agreement for a lesser amount YOU CAN STILL OWE THE IRS TAXES ON THE AMOUNT YOU BANKRUPTED ON! The discussion was about homeowners refinancing upside down mortgages. Do you get this now?

You said you never said anything about Chapter 7 bankruptcy, but then you turn around and say the above, "bankrupt on credit cards" There are only 2 ways for personal bankruptcy, Chapter 7 and Chapter 13. However you clearly stated "bankrupt on credit cards".

Could you have possibly meant "default on credit cards" instead of bankrupt?

Joanimaroni wrote:I really don't know that much about bankruptcy. What I do know is a friend had to file bankruptcy because of her husband. They were getting a divorce and she pulled the financials she found out they were $250,000 in debt. Part was their house they owed $150,000 after a huge down payment...he had stopped paying the mortgage and the rest was credit card debt. He was stationed in another city and all the bills went to his oot address. She had no clue and later found out he had also taken out credit cards in her name....he even charged a 4 year college education. So, besides the house all debt was credit cards. The bankruptcy wiped out all debt and they chose to let the house go.

The bankruptcy does wipe out the debt on credit cards and it is not taxable under a discharge. Seaoat jumped to conclusions when I said bankrupting on credit cards is taxable because I used the term "bankruptcies" meaning having no money to pay them.He's trying to tell me you can't use the term bankrupt because it means a legal filing. He then went on a tirade telling me I was a fool and wrong and then all my statements were false.First,second and third.Now he's wimping out because he can't substantiate his accusations.

You then went on to say I was wrong about reaffirmations and liens on property and now you're failing to address those false statements because you probably went and looked it up and saw you were WRONG!

I never responded to your nonsense on liens.....because it is absolutely irrelevant to the issue of credit card debt being discharged in bankruptcy being taxed. Whether a creditor is unsecured or goes to judgment does not change the central issue we are discussing which is tax owed on the credit card debt in bankruptcy. Why would I respond to an idiotic self serving diversion which has nothing to do with the core issue?

I did respond to your diversion on reaffirmations, only to state how bone chilling stupid this diversion was because a reaffirmation regardless of bankruptcy creates no non payment and no debt is forgiven.....so why would we be talking about this diversion when the topic involves taxes owed the IRS when a person bankrupts credit cards.

Dreams......other than giving you a link to educate you on IRS regulations I have had no need to look anything up, or cut and paste.....you are simply clueless........you really are an empty suit......and I honestly thought you were fooling around on this thread....and that you did understand that no taxes are due on bankrupted credit cards.......I now realize how very little you know.....and this cut and paste response to justify your original ignorance......well.....again ......this thread speaks for itself.

Ghost_Rider1 wrote:

Dreamsglore wrote:

Here Seaoat,maybe you'll understand this. I have misjudged your level of intelligence. I never said anything about filing a bankruptcy.Take Chapter 7 out of the equation.If you bankrupt on credit cards, in other words don't have the money to pay them and make an agreement for a lesser amount YOU CAN STILL OWE THE IRS TAXES ON THE AMOUNT YOU BANKRUPTED ON! The discussion was about homeowners refinancing upside down mortgages. Do you get this now?

You said you never said anything about Chapter 7 bankruptcy, but then you turn around and say the above, "bankrupt on credit cards" There are only 2 ways for personal bankruptcy, Chapter 7 and Chapter 13. However you clearly stated "bankrupt on credit cards".

Could you have possibly meant "default on credit cards" instead of bankrupt?

Exactly! I used the word bankrupt which has the same meaning as default.When you bankrupt on something it means you don't have any money to pay them. You have bankrupted on them and can't pay them.

Seaoat jumped to conclusions when I said bankrupting on credit cards is taxable because I used the term "bankruptcies" meaning having no money to pay them.

Jumped to conclusion......the words we use in this country are understood to be English......The THEY you used in your original post was the IRS....you know the people who make the regulations regarding taxes......and they......not you Dreams define what Bankruptcy means under their code.....I have never seen such intellectual squirming, or should I say lack of intellectual.......your original post was dead wrong, and was telling people information which was absolutely incorrect. You could read your original statement to 10 college graduates, and then let them read the IRS regulations.....and not one of them would agree that anybody jumped to conclusions......we simply read your incorrect conclusion of what the IRS regulations are.....

Dreamsglore wrote:
Exactly! I used the word bankrupt which has the same meaning as default.When you bankrupt on something it means you don't have any money to pay them. You have bankrupted on them and can't pay them.

I believe that most people upon hearing the word bankrupt take that to mean the actual filing of Chapter 7 or 13. I believe the problem here can be attributed to the English language. I for one would never use bankrupt unless an actual filing is about to or has taken place. I would use default to discuss someone that is not paying their just debts.

Exactly! I used the word bankrupt which has the same meaning as default.When you bankrupt on something it means you don't have any money to pay them. You have bankrupted on them and can't pay them.



Words have meanings. When you are talking about the IRS taxing someone.....they have definitions Dreams......not your misuse of the English language you are attempting to create. because you did not understand that bankrupted credit cards owe no tax to the IRS.....you spin your ignorance anyway you want.....but you do not provide definitions to the IRS, nor should you be giving tax advise to anybody with your lack of knowledge, and your original post was simply stupid on steroids.....wrong.......nobody who bankrupts credit cards owes a red cent to the IRS......