Received a Form 1099-C for canceled debt? Learn why the IRS may consider it taxable income and, crucially, how you might be able to avoid paying taxes on it.

Question: I successfully filed for personal bankruptcy protection in 2025 under Chapter 7 to get out from under an overwhelming amount of credit card debt and back taxes created during the COVID years ...

The Tax Court held that a married couple’s interest in their retirement account was not considered an asset for purposes of the cancellation-of-debt (COD) insolvency test, and thus the taxpayers could ...