by Randy Carey: If the individuals only signed on behalf of the corporation, they were not legally individually responsible for the payment of the debt in the first place, so I don't understand why there would be such a question. I think we are missing a part of the puzzle.
by Andy Zavoina: If the individuals signed individually as well as for the business you may have what appears to be an identifiable event. But also look at the exclusions for 1099-C reporting - bankruptcy may be an exclusion. This IRS publication has some details. I am not a tax expert and would refer you to someone who is to ensure your scenario is or is not reportable.