Remember too if anyone rights off your debt for tax purposes, like a credit card company; you are expected to pay tax on the amount they right off—-even all the

Remember too if anyone rights off your debt for tax purposes, like a credit card company; you are expected to pay tax on the amount they right off—-even all the late fees, and other crap they load on your account. Now if you are basically insolvent, you can give them a letter, and a rudimentary asset/liability statement. If you get the right (I guess in a good mood) IRS agent they will disavow the tax. (Personally, I would like to see penalties for tax violators tied to personal assets. A wealthy guy gets a penalty much higher than a poor person. Jail should never be a punishment too.)