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1 reply

W
windydink
June 1, 2019

Basically, when a debt is forgiven in bankruptcy, the debt amount is considered as income to you. You will be required to report the amount on your return as income. I am not aware of any current tax exemptions available at this time.

The only option is to report the income and request a payment plan from the IRS for the tax due when filing your return.

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