Debt write-off

I have a debt account for my car. The car was recently totaled in an accident. Insurance has taken care of the remaining debt plus a little bit extra that went into my checking account. I don’t know how to record this without artificially inflating my income or my available budget. Or maybe the extra that went into checking is income and I only need to deal with the debt account? Maybe it’s really simple and I’m overthinking it.

Sorry to hear about your car. If the insurance has paid off the car directly to the lien holder, or if you just don’t want to have that income/outgo in your reporting, then I would just adjust the balance of the car note to 0. You can do that by going into Accounts, then Edit, then changing the balance to 0. That will create a line item that you can rename to reflect why it’s no longer carrying a balance.
The remaining funds are legitimate income in your checking account, so I’d enter that the same way you’d enter a gift or a winning lottery ticket.
Hope that helps!

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Worked perfectly, thank you!

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