Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
I was insolvent when I filed in 2006 but the bankruptcy wasnt completed until Feb of 2007. So, when was I insolvent for this issue? Does the insolvency mean my business or just my personal situation?
You should keep very good records of your calculations in case the IRS required you to "prove" the insolvency amount.
Here is a link to IRS publication with detailed information