My husband is disabled. He had $15,000 in student loans that were forgiven in nov. 2012. We just received a 1099-c for thisamount. I know we have to include this on our taxes. I also know there is a bankruptcy exception. We filed chapter 13 in june 2009 and this student loan debt was listed. Our bankruptcy was completed in june 2012. The student loan was not forgiven due to the bankruptcy, but was forgiven due to paperwork filed this year. Can we claim the bankruptcy exception? Also, will the 1099-c count as income for the SSI my 2 disabled children receive? thanks for any help...Thanks for all of the replies. We are not insolvent, so that exemption does not apply. I have calls in to 2 tax attys in my area, but so far I can't get anyone to call me back. Thanks for the CPA recommendations, maybe I'll have better luck with them.