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Contingent debt is a debt that may become fixed in future. A contingent debt is not fixed or specific at present. It is dependent upon the occurrence of some other event which is doubtful or uncertain. The future event must occur to establish the obligation for payment. For example: a debt that may be fixed in a bankruptcy proceeding. A taxpayer can include a contingent debt in the determination of insolvency, when a taxpayer can prove that it is more probable.