where did the italicized comments come from as it may be in variance with this statement from the IRS in the link below:
Was the debt cancellation the result of a plan approved by the Court?
please see the attached link and specifically this commentary on page 5
https://www.irs.gov/pub/irs-pdf/p4681.pdf
Bankruptcy
Debt canceled in a title 11 bankruptcy case isn't included in your income. A title 11 bankruptcy
case is a case under title 11 of the United States Code (including all chapters in title 11
such as chapters 7, 11, and 13). You must be a debtor under the jurisdiction of the court and the
cancellation of the debt must be granted by the court or occur as a result of a plan approved by
the court.
How to report the bankruptcy exclusion. To show that your debt was canceled in a bankruptcy case and is excluded from income, attach Form 982 to your federal income tax return and check the box on line 1a. Lines 1b through 1e don't apply to a cancellation that occurs in a title 11 bankruptcy case. Enter the total amount of debt canceled in your title 11 bankruptcy case on line 2. You also must reduce your tax attributes in Part II of Form 982 as explained under Reduction of Tax Attributes, later.
