The Mortgage Forgiveness Debt Relief Act

The Mortgage Forgiveness Debt Relief Act was signed in 2007 by President Bush. The purpose of the Act is to provide tax relief for persons whose homes faced foreclosure, but who have had their mortgage debts relieved. The Act pertains to all debts that were discharged from 2007 to 2012. The relieved debts were going to be considered “income,” and, consequently, taxable, so Congress passed this act to relieve debtors from the tax burden.

If you or someone you know are facing overwhelming debt, contact the West Palm Beach bankruptcy attorneys to discuss how bankruptcy can ease your financial burden. Call the law office of Eric N. Klein & Associates at 561-353-2800 to speak with a professional about your situation.

The Benefits

Under normal tax circumstances, all relieved debts are considered taxable