The concept, although quite simple, can actually be very confusing for consumers, especially because of false information offered by some debt relief sales people. The bottom line: Unless exempted by the insolvency rules or another exemption, you will owe taxes on debt that has been forgiven by a creditor. In this article I assume that none of the exemptions apply. Some of my clients have expressed an attitude of distaste that after finally getting out from under a crushing debt […] Read more »