1099 and insolvency

I have a question regarding 1009 and insolvency. My mother has two investment properties that are being foreclosed on. It's basically inevitable. I know she will receive 1099's for the forgiven debt since the banks need to get that off of their books. My question is.. what happens if she cannot pay the taxes on those 1099's? She's basically unemployed, lives with me and has no assets. Just a 1999 minivan. What can she do? I heard that you prove insolvency if your liabilities are greater than your assets... How does the IRS view this, is it as easy as just filling out the insolvency worksheet and form 982? Please advise as she is very ill and on meds because of this situation.
Thanks...