We finally gave up on trying to settle our unsecured debts ($100K+) and filed for bankruptcy December 14th, 2004. It has been a two year process of bad choices and decisions but that is in the past. We need some info in regards to additional income. In trying to settle our debts we were able to reach an agreement with four of our creditors. The total of the four credit cards was $32,600, we settled for a total of $15,400. We were informed that the difference between the original amount and the settlement amount would be considered as additional income and would be included on our income tax. The 60 days it takes for the Chapter 7 to become will be February 12th. Do we have to count the amount of debt that will be dismissed as additional income also? The $15,400 we used to settle the first accounts was from a loan against an annuity I had. That loan is part of the Chapter 7. I know the situation appears to be complicated but I believe there is a practical solution.Thanks
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