As long as this was your primary residence and you had owned and lived in it for at least two years the you will probably qualify for the Use of the form 982 under the QPRD. Which means that as long as the debt cancellation was for a loan that purchased, built, or improved the residence that secured the note you should be ok. If the loan was used for other things, like bill consolidations, other non-residential purchases, etc, then the debt would not qualify.