Under U.S. tax law, debt forgiveness is considered income because it reduces liability and increases the taxpayer`s net worth. In the context of the bursting of the U.S. housing bubble, the Mortgage Forgiveness Debt Relief Act of 2007 provides that the cancelled debts of a principal residence will not be considered income, as the debt was cancelled during the 2007-2009 period. The Economic Stabilization Act 2008 extended this three-year period for the period 2007-2012. In the United States of America, personal non-housing debt (car loans, credit cards, student loans, etc.) increased significantly in the years leading up to the 2007-08 financial crisis, from about $2.05 trillion in early 2003 to a peak of $2.71 in the fourth quarter of 2008. It was not until the third quarter of 2012 that unsecured personal debt returned to this level. Since then, unsecured personal debt has steadily increased at the end of the third quarter of 2017 to reach $3.76 trillion.  The other major change in unsecured personal debt is that an increasing portion of student debt is now 12% in the first quarter of 2003 to 53% in the third quarter of 2017. The war debts of The First World War Allies in the United States had been suspended in 1931 – only Finland paid in full – and American public opinion demanded that repayments be reinstated as a condition for post-war American aid.
Germany had suspended its reparation payments, due under the 1919 treaty and paid to Great Britain to France and others, as well as its loans to the United States. Chancellor Konrad Adenauer has decided that lasting goodwill requires their recovery. The 1953 Agreement on German External Debt, which took over Germany`s war reparations, is a remarkable example of the cancellation of international debt.   Personal debts that can be repaid on income but are not repaid can be obtained by foreclosure or seizure of income that will deduct the service of the wage debt. The most important mechanism for debt cancellation in modern societies is bankruptcy in which a debtor who cannot or will not pay his debts declares bankruptcy and renegotiates his debts, or a creditor commits to it. As part of the debt restructuring, the terms of the debt are changed, which may result in a reduction in the debt owed. If the debtor decides to go bankrupt when he is able to repay the debts, this is a strategic bankruptcy. Debt cancellation agreements may vary from state to state and jurisdiction to jurisdiction. For example, the Texas State Office of Credit Commissioner (OCCC) sets contractual requirements for debt cancellation agreements made available to consumers by auto agencies. One of the most interesting requirements is the fact that the buyer has non-life insurance for the vehicle while in his possession.
DcAs are generally considered an alternative to insurance. However, insurance is about the depreciation of the automobile. Debt relief plays an important role in some works of art. In William Shakespeare`s play The Merchant of Venice, circa 1598, the heroine pleads for debt relief (pardon) for reasons of Christian mercy. In the 1900 novel The Wonderful Wizard of Oz is a primary political interpretation that he deals with free money, which generates inflation and thus reduces debt. In the 1999 film Fight Club (but not in the novel on which it is based), the climatic event is the destruction of credit card records, which are dramatized as a destruction of skyscrapers, which helps alleviate the debt. The television series Mr Robot (2015-2019) follows a group of hackers whose main mission is to cancel any debt by removing one of the world`s largest companies, E Corp. In 2019, it is estimated that the Texas legislature gave $2.5 billion to debts when it abolished its Driver Responsibility Surcharge in all cases, with the exception of DWI. This supplement was added to an additional 3-year civil sentence for certain criminal offences such as