Cancellation of Debt in decedents SSS when estate is distributed and wife filing Qual Widower

I have a similar situation - T/P died 2010 - filed 1040 & final 1041 for 2010.  Executor negotiated with CC companies and paid debts @ 50%.  The COD income is 12K - issued in the name & SSN of decedent. 

You would suggest filing another 1041 for 2011 - showing the COD income - could I still use the "decedent" type of 1041 and use the $600 exemption amount?

Thank you

Maybe.  Or not.  Was the estate insolvent?  (ie why did the cos agree to settle for 50%?)

Thank you for your response - In 2011 the estate had 1099-C income and a refund from the state 2010 return.The estate is not insolvent as there is cash assets from the decedents bank accounts & pension from 2010.  The executor has not disbursed all the assets.  As for expenses - just lawyer fees and accountants fees. (minimal) 

I filed the 1041 in 2010 as a decedents 1041, using the $600 exemption.

Then it sounds like you have taxable COD income in the estate.

We have a similar situation.  We have a unsecured promissory note signed by a decedent [DOD 12/1/09], naming his successors and heirs as responsible.  We wrote to his attorney prior to year's anniversary of his death and requested payment. Eventually we had to file a suit but unless we filed our claim as part of his probate, they have said we cannot make the claim.  But [1} we did make a formal request in writing to his attorney, and [2] he had a trust and no probate.  

So can we just issue the decedent a 1099C for the debt? 

But do you have a claim against his heirs/successors?

To me this sounds more like a legal question than a tax question.