How Will I Know That I Am Being Released From The Debt?

It will be stated clearly on the bank's Short Sale approval. Your lender will state in plain English (though in different verbiage depending on the lender) that they are "releasing the lien", "accepting a short payoff to satisfy the lien", "reporting the sale as a settled debt to the reporting agencies", "issuing a full satisfaction of the mortgage", 'not pursuing a deficiency judgment", or some other variation that states they are settling the debt for less than what they were owed.

Further, your bank will issue a 1099-C to you, the borrower, after the Short Sale, confirming that the debt has been written off and is settled. Your lender can not write off the debt, issue you a 1099-C & then go after you for the deficiency.