What are tax implications of this kind of freedom?

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Why would the two be related? Are your supposed debts, or your payments on them, presently tax deductible? I am not a taxpayer, nor a tax advisor, so you would need to consult a tax professional for such answers. All Liberty does is cancel your unsecured debt. Unless you are a taxpayer and the debt is tax deductible, I don’t know what implications the cancelation would have.

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