You are entitled to complete the following form to determine your level of insolvency. Unsecured consumer debt that is forgiven debt, on which you receive a 1099-C qualifies. But remember you reduce the debt by the level of insolvency. MOST likely, you will reduce the taxable amount at least in part. If your insolvency is sufficient you can reduce it to zero.
Use this form: http://www.irs.gov/pub/irs-pdf/f982.pdf
Your accountants can do this for you.
FROM IRS CODE "... The term ‘insolvent' means the excess of liabilities over the fair market value of assets. With respect to any discharge, whether or not the taxpayer is insolvent, and the amount by which the taxpayer is insolvent, shall be determined on the basis of the taxpayer's assets and liabilities immediately before the discharge."
This link discusses what to measure and how; I have verified that the information provided is up-to-date and meets the IRS guidelines.