There is information in the instructions for Form 982. You may be able to exclude debt for a nonbusiness debt (other than qualified principal residence indebtedness, such as a car loan or credit card debt). This will help you to get started, however it would be wise to contact a tax professional to really get the action started.
If bankruptcy is a factor for any year that could create some additional support for your claim to eliminate some of your cancelled debt.
Due to the timeframe and nature of your cancelled debt, it may even be in your best interest to find a tax attorney or a CPA who specializes in income tax.
We are sorry for your medical hardship for your wife.
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