Reply to "Bankruptcy"

There are lawyers that deal with collection issues all the time. They usually get a cut of what they collect so you should have no out of pocket expense. If the BKed outfit has gone total belly up and there is nothing left, move on. The secured lenders got first dibs on the remains. If you're unsecured, you get nothing or a few cents on the dollar. That sounds like the cae here. I think if you are an accural based, you can deduct it but talk to your tax guy first.