All of that said, the Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude from income from the discharge of debt on their principal residence.

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The Obama administration urged Congress to make it easier for people to discharge a portion of certain student debt by filing for bankruptcy protection.

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They are similar in some ways to debt discharge cases like that of David and Carla Stewart who received a 1099 from Portfolio Recovery Asscoiates concerning credit card debt that was over ten years old.

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Unlike most other types of consumer credit, student debt is extremely difficult to discharge in bankruptcy.

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She happened to mention that some attorneys accept payment of retainers by credit card to represent the client in a bankruptcy which will discharge that very credit card debt.

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