Thanks Lisa. This is first time for me to file canceled debt so really need more how to do that. As I understood, first fill out 1099-Cs as usual.

Next, I Filled out chanced debt worksheet. I did them for each one. 

You said: 

"I always have the client fill out the Insolvency worksheet, once you've got that completed the software does the rest automictically"

For above part, do you mean : client should fill out insolvency worksheet and attach it to e-file or  should I fill it out on the software? Need a hint please Lisa for this part.

After this part what should I do?

How about form 982? In part II on this form which line is related to credit card cancelation?

I entered on line 1b the whole amount of insolvency but nothing change on Sch 1, so that still I have positive amount on Sch 1. 

Thank you for all the help you have given me as of being here, the community.