How to report insolvency exclusion?

As far as I know, if the difference between the amount you owe and the amount for which you settle the debt exceeds $600, you need to pay tax on the amount exempted because it will be calculated as part a of your income.

How to report the insolvency exclusion. To show that you were insolvent and that you are excluding canceled debt from income to the extent you were insolvent immediately before the cancellation, attach Form 982 to your federal income tax return and check the box on line 1b. On line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately before the cancellatotion. You must also reduce your tax attributes in Part II of Form 982 as explained under Redution of Tax Attributes, later.

Example 1.
In 2007, Greg was released from his obligation to pay his personal credit card debt in the amount of $5,000. Greg received a 2007 Form 1099-C from his credit card lender showing canceled debt of $5,000 in box 2. The FMV of Greg???s total assets immediately before the cancellation was $7,000 and his total liabilities were $15,000. This means that immediately before the cancellation, Greg was insollowing to the extent of $8,000 ($15,000 total liabilities minus $7,000 FMV of his total assets).Because the amount by which Greg was insolvent immediately before the cancellation exceeds the amount of his debt canceled, Greg can exclude the entire $5,000 canceled debt from income.

When completing his tax return, Greg checks the box on line 1b of Form 982 and enters $5,000 on line 2. Greg completes Part II to reduce his tax attributes as explained under Reduction of Tax Attributes, later. Greg does not include any of the $5,000 canceled debt on line 21 of his Form 1040. None of the canceled debt is included in his income.

Example 2.
Assume the same facts as in Example 1 except that the FMV of Greg???s total assets immediately before the cancellation was $7,000 and his total liabilities were $10,000. In this case, Greg is insolvent to the extent of $3,000 ($10,000 total liabilities minus $7,000 FMV of his total assets) immediately before the cancellation. Because the amount of the canceled debt exceeds the amount by which Greg was insolvent immediately before the cancellation, Greg can exclude only $3,000 of the $5,000 canceled debt from income under the insolvency exclusion.
Greg checks the box on line 1b of Form 982 and includes $3,000 on line 2. Also, Greg completes Part II to reduce his tax attributes as explained under Reduction of Tax Attributes, later. Additionally, Greg must include $2,000 of canceled debt on line 21 of his Form 1040 (unless another exception or exclusion applies).

How to report the insolvency exclusion. To show that you were insolvent and that you are excluding canceled debt from income to the extent you were insolvent immediately before the cancellation, attach Form 982 to your federal income tax return and check the box on line 1b. On line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately before the cancellatotion. You must also reduce your tax attributes in Part II of Form 982 as explained under Redution of Tax Attributes, later.

Example 1.
In 2007, Greg was released from his obligation to pay his personal credit card debt in the amount of $5,000. Greg received a 2007 Form 1099-C from his credit card lender showing canceled debt of $5,000 in box 2. The FMV of Greg???s total assets immediately before the cancellation was $7,000 and his total liabilities were $15,000. This means that immediately before the cancellation, Greg was insollowing to the extent of $8,000 ($15,000 total liabilities minus $7,000 FMV of his total assets).Because the amount by which Greg was insolvent immediately before the cancellation exceeds the amount of his debt canceled, Greg can exclude the entire $5,000 canceled debt from income.

When completing his tax return, Greg checks the box on line 1b of Form 982 and enters $5,000 on line 2. Greg completes Part II to reduce his tax attributes as explained under Reduction of Tax Attributes, later. Greg does not include any of the $5,000 canceled debt on line 21 of his Form 1040. None of the canceled debt is included in his income.

Example 2.
Assume the same facts as in Example 1 except that the FMV of Greg???s total assets immediately before the cancellation was $7,000 and his total liabilities were $10,000. In this case, Greg is insolvent to the extent of $3,000 ($10,000 total liabilities minus $7,000 FMV of his total assets) immediately before the cancellation. Because the amount of the canceled debt exceeds the amount by which Greg was insolvent immediately before the cancellation, Greg can exclude only $3,000 of the $5,000 canceled debt from income under the insolvency exclusion.
Greg checks the box on line 1b of Form 982 and includes $3,000 on line 2. Also, Greg completes Part II to reduce his tax attributes as explained under Reduction of Tax Attributes, later. Additionally, Greg must include $2,000 of canceled debt on line 21 of his Form 1040 (unless another exception or exclusion applies).

please correct me if I'm wrong but here is how I understand this.
If the amount by which I'm insolvent immediately before the cancellation exceeds amout of debts canceled I pay no taxes at all.
my orginal post asking about this included house, cars ect. let's make it simple.
I have 100k in CC debts, I settled all CC for 30% so 70k is canceled, my asset is 20k so I'm still insolvent 10k, should I be paying taxes on canceled 70k in this example?
I think NO according to this publication from IRS

I HAVE CANCELLED PERSONAL DEBT IN THE AMOUNT OF 50,000. The publication 4681 is not available yet from IRS. Do I total up my assets and liablilites. Then do I subtract the $50,000 from my total assets. IF my total liabilites are more, then what do I do.