I also have this question and have found various information online as well as here at TurboTax.
Many sources say that Chapter 13 can be excluded, but I think the wording is confusing. It may be that it can be excluded as debt to insolvency. I think in that case you need to fill out Form 982 and a Insolvency Worksheet.
The TurboTax answers suggest not using the online version, and instead to download the program to your computer. I did that, and I am still having trouble understanding.
It seems that maybe we need a CPA to answer this.
My H&R accountant, also seems to be confused on the issue, which is why I came to TurboTax to find answers. I'm getting really frustrated with the lack of concrete information out on there on this particular Chapter 13 issue, and hope someone can provide more details.
Here is a great article on the subject of the form 1099-C and bankruptcy and taxes. In any case you do need to contact the IRS. The two scenarios are:
1. If the 1099-C is because of/part of the bankruptcy, you will complete a form 982 to file with your return as there will be no income as there would be no debt.
2. If you got the 1099-C and then filed for bankruptcy, you contact the IRS due to insolvency.
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