Form 982 filing from a chapter 7 discharge

IRS form 982 instructions read as follows:

 

Line 10a

 

In the case of a title 11 case or insolvency, the reduction in basis is limited to the aggregate of the basis of your property immediately after the discharge over the aggregate of your liabilities immediately after the discharge. However, this limit doesn’t apply to a reduction in basis reported on line 5 pursuant to section 108(b)(5).

 

Bankruptcy is a title 11 case.

Thank you for the response, but I don't know what any of that means. I read that, also, on the IRS website. I am having a hard time getting past the IRS lingo and technical terms. Can you explain it in layman's terms?

Can you fill in my example below?  Do I need to put anything else in the form?

This is non business debt with no property.  I am claiming a title 11 case.

Part 1

Line 1a - Checked

Line 2- $5000 (example amount)

Part 2

Line 10a- what goes here?

 

Thanks!

If the debt forgiven is not related to a business, real estate, or other property, Part II does not apply to you. You can leave that part blank.