Is the debt discharged in bankruptcy income that has to be reported on my income tax return?

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 | | 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.