Debt Cancellation/Insolvency Questions We had debt from a short sale cancelled on 4/12/14. We are trying to prove insolvency.
Two Questions:
1. Do we have to claim 529 accounts on the insolvency form (982)?
2. On 4/10/14 (two days before date of cancellation), my husband's aunt passed away and left him a large sum of money and assets. Does this money need to be included on the 982? The form says to include assets "immediately before" the debt was cancelled. Is "immediately before" hours, days, weeks?? I'm assuming he took ownership of his aunt's estate immediately upon her death (does this happen immediately??). I am putting calls in to find out when he became the owner of the assets (even though he did not receive a distribution), but thought I'd see if anyone has any experience with this!
If we can't prove insolvency we are going to owe $40,000... ugh!!!
Thanks in advance! |