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Do you have to pay taxes on money discharged from bankruptcy?

In: Taxes and Tax Preparation, Bankruptcy Law [Edit categories]

Answer:

Cancellation of Debt is income. HOWEVER there is a special exemption for bankruptcy cancellations that may be applied in most cases.

First answer by IamLostRU. Last edit by IamLostRU. Contributor trust: 1566 [recommend contributor ]. Question popularity: 1 [recommend question].

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