Discharging of debt

[Derek Atkins]

"Scott Castaline" <skotchman at gmail.com> writes:

> Recently I had to file for Chapter 7 Bankruptcy (USA) and have received the
> notice of discharge of debt. My question would be, how do I reflect this in
> GnuCash? I have version 2.2.0 on Fedora 7. All of my debts that were
> discharged are setup as liability accounts. I have searched in the archives
> and came up with nothing. Any suggestions?

I think what I would do is create one major Split transaction
between all your liability accounts and a new "Equity:Debt Discharge"
account that effectively cancels out all your debts as per the
judgement.  But I suggest you ask your accountant how you need
to account for it.

> TIA
> Scott

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available