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If you negotiate with the creditor and all or part of the debt is forgiven or the debt would be canceled under bankruptcy protection procedure - you are sent the form 1099-C.
The amount of debt forgiven is reportable on 1099-C - http://www.irs.gov/pub/irs-pdf/f1099c.pdf - generally is taxable, unless any exemption apply -- you should file a form 982 - www.irs.gov/pub/irs-pdf/f982.pdf - to proof your exemption - and might exclude all or part of canceled debt from taxable income.
Filing the form 982 depends on the type of debt and which exemption you are using.
You will find examples in IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments http://www.irs.gov/pub/irs-pdf/p4681.pdf