Discharging of debt

[Scott Castaline]

On 9/28/07, Derek Atkins <warlord at mit.edu> wrote:
>
> "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
>
> > Please remember to CC this list on all your replies.
> > You can do this by using Reply-To-List or Reply-All.
>
> -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
>
Thank you both Derek & Anthony. I wound up doing it the way Derek suggested,
which is what I thought but wasn't sure where to place the account. Thanks
Derek again.