Question : How to prove insolvency after credit card settlement?
I will settle one of my credit card debt. To prove insolvency to the IRS, what information will I need to give along with a 982 form?

Do I calculate the amount of income + assets + credit card debt after I settled? Or do I count information of all my credit card debt before I settled?
Before I settled = $ 22,000 debt. After I settled = $ 5,000 debt remaining. Which information will I use to prove insolvency?

Thank you all in advance for your time and help.
Mike
credit card settlement

Best answer:

Answer by v b
Get IRS publication 4681. The current edition includes a 2-page worksheet for calculating insolvency.

You’ll use the $ 22,000 number.