You are a cash-basis business owner and obtained some professional services on credit. Later on, when you were having some cash-flow problems, a portion of the debt was canceled. You had not already deducted the price of the services, but would have been able to deduct the full price if you had paid it. In this case, you don't have to report the debt cancellation as income.
If you were using the accrual method, you would have recognized and deducted the full professional service expense at the time the services were rendered, so the debt cancellation would have to be treated as income.