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Genius play by the lender:

In general, if your debt is canceled, forgiven, or discharged for less than the amount owed, the amount of the canceled debt is taxable. If taxable, you must report the canceled debt on your tax return for the year in which the cancellation occurred.

https://www.irs.gov/taxtopics/tc431

Dudes gonna get fricked by the IRS if true. Liable for pretty much everything he hasnt paid to the lender as income which you know hes not reporting to the IRS

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Unreal lol

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All it takes is the lender reporting it and why wouldn't they, its a loss you can likely write off if you're never getting paid and ff the cash ever coming

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You don't realize the income if you're insolvent at the time of the discharge, and you know he is.

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