If your debt is forgiven or discharged for less than the full amount owed, the debt is considered canceled for the forgiven or discharged amount that you no longer need to pay.
Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're obligated to pay..
Cancellation of debt (COD), sometimes referred to simply as debt cancellation, occurs when a creditor relieves a borrower from a debt obligation
Debtors may be able to negotiate with a creditor directly for debt forgiveness
They can also have debts canceled through a debt relief program or by filing for bankruptcy
Collection activities and communications that do not otherwise violate this subchapter may continue during the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor
