Most people in Rockland County are unlikely to be familiar with IRS Form 1099C or the term “cancellation of indebtedness income.” A Form 1099C is one of the many methods of reporting income that does not appear on a Form W-2 or a Form 1099MISC.
For many people in Rockland County, bankruptcy looks like an expert ski hill – once you start down, you have almost no way to stop. In the process, creditors will seize assets that provide security for a loan that will be discharged, and valuable assets, such as a car or a house, will be lost forever.
Many factors can force a business into bankruptcy. The most common reasons for a business to seek bankruptcy protection is too many debts and insufficient revenue. Shoddy business practices can also be an underlying cause.
A previous post here reviewed Chapter 7 bankruptcy, which usually results in the discharge of most of a debtor’s financial obligations, but does not necessarily protect a person’s home from foreclosure.
Most residents of Rockland County who have never filed a bankruptcy petition view the process as a long, dark journey during which they will be forced to sell most of their assets in exchange for having many of their debts declared uncollectible by the bankruptcy court.