No. If you do not receive a 1099-C, you do not need to file Form 982. The Internal Revenue Code ( see section 108 of the IRC) excludes the discharge in debt achieved under the bankruptcy code from its definition of income. One of the advantages of bankruptcy is that it provides that the cancellation of debts under the Code will NEVER be construed as income for tax purposes.
So if you file bankruptcy, you do NOT have to report the debts forgiven or pay taxes on them.
This is in contrast to debt settlement, where any relief provided may be taxable income.
For various reasons, some creditors may still send you a 1099C. If this happens, make sure that the debt was discharged in bankruptcy and not settled before the bankruptcy (which could be taxable). If it was discharged, file IRS Form 982. While this form can be complicated, for the consumer with debts discharged in bankruptcy it is simple. Just check the box “1a” “Discharge of indebtedness in a title 11 case” (“Title 11” is the bankruptcy code) then list the amount on line 2. If the debt was secured by an asset you kept (such as real estate), ask your tax preparer or attorney about the completion of line 10a, otherwise you are done. For businesses it is more complicated, but for a consumer it is just that simple.
