Is the debt discharged in bankruptcy income that has to be reported on my income tax return? | The Golden Law Group | Helping Residents & Businesses Get Financial Stability | (813) 413-8700 | https://www.brandonlawyer.com | 808 Oakfield Drive, Ste A, Brandon, Florida 33511 | 9040 Town Center Pkwy, Bradenton, Florida 34202
Most of the time discharge debt or forgiven debt is taxable. However, there is an exception when you file bankruptcy. This is a very good reason, and one of the best reasons, to file bankruptcy is to avoid e taxable event that can occur when debt is forgiven outside of bankruptcy.