cancellation of debt

Definition

Release of a debt without consideration by a creditor.

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The cancellation of debt was very great and we were happy that it was cancelled and did not keep going.

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A cancellation of debt was made In conjunction with a plan of reorganization under Chapter 11 of the bankruptcy provisions.

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My boyfriend has been stressed for several years about the hefty repayments of student loans, but because of a loophole was eligible for cancellation of debt lifting a huge weight off of his shoulders.

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cancellation clause 1099-C Form