All I can say there is that they are either subject to some VERY hefty fines or are misleading you about the cancellation of the debt.
On the 982 ...
If a taxpayer qualifies for the bankruptcy, insolvency or qualified farm indebtedness exclusion, then the amount of the exclusion must be applied to reduce the taxpayer’s “tax attributes” in the order listed
• Net operating loss (NOL) of the year of the debt discharge and any carryover to that year;
• General business credit carryovers to or from the year of the debt discharge;
• Minimum tax credit as of the beginning of the year
following the year of the debt discharge;
• Capital loss of the year of the debt discharge and any carryover to that year;
• Basis of property;
• Passive loss carryover from the year of the debt discharge; and
• Foreign tax credit carryovers to or from the year of the debt discharge
So what this does is limit the value of any losses you might have AND lower your basis in the assets you do have so that you will not benefit as much when sold at a future date (will have the effect of increasing gain)