My husband is disabled and has $15,000 in student loan debt. We applied to have this amount forgiven and he was granted forgiveness on this loan in Nov 2012. We received a 1099-C for this amount, which I know needs to to be reported on our taxes. I know there is a bankruptcy exception. We filed chapter 13 in June 2009 and the debts were discharged in June 2012. The student loan debt was included in the bankruptcy paperwork, but was discharged only after we applied for forgiveness throught the dept of education. Does this count as the bankruptcy exception? i am worried that this extra amount on our taxes will show our income much higher than it actually is. We have twin 10 yr old sons who are disabled and receive SSI. They also go to therapy, which is on a sliding scale depending on income, 4 times per week. Will the 1099-C income count toward income as far as SSI is considered? Thank you for any help or advice you can give me (*very worried)