What is the proper timing for determining the date of an uncollected debt? For example: An uncollateralized loan of 200,000 is made form person a to person b with a repayment schedule, late fees and interest. Person b defaults and does not repay person a. Person a tries to collect with the help of an attorney. A civil suit is contemplated. Person b says he cant and will not pay. Time elapses and person b does not pay for 1 to 4 months. In the next tax year person b files for bankruptcy. Bankruptcy attorneys are now deposing the parties involved. There may be fraudulent transfers involved. Which tax year is the uncollected debt? What determines the timing? The day of the failed payment, the day of verbalized I cant and will not pay, the day of civil suit filing, the day of bankruptcy declaration, the day of adjudication etc
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