Generally the IRS will not tax you on a forgiven debt to the extent that you are insolvent. Insolvent to the IRS mean more liabilities than assets. https://www

Generally the IRS will not tax you on a forgiven debt to the extent that you are insolvent. Insolvent to the IRS mean more liabilities than assets. https://www.irs.gov/newsroom/what-if-i-am-insolvent https://www.irs.gov/newsroom/what-if-i-am-insolvent