If I negotiate a $20,000 credit card debt lower, t

If I negotiate a $20,000 credit card debt lower, to say $ 10,000.....isn't the difference taxable to me ?
Is there any way to avoid it ? I've been trying to avoid a bankruptcy filing, and remain insolvent with health issues and lack of work. Thanks!

3 Answers

IRS regards the total amount saved through debt settlement as taxable income. The forgiven debt amount is considered as taxable income. Once the debt is settled, you are most likely to get the 1099C form. However, you may not have to pay the tax if you can prove that you are insolvent.

Get more details from the following page:

"http://www.irs.gov/individuals/article/0,,id=179414,00.html"


No dear,there is basically no way to exempt that income from your taxes. Just save enough money so that you can repay whatever you owe, whether on your credit card debt or on your taxes.


Any settlement over $600 is taxable to you. 

If you have health issues and are unemployed, I would be looking closer at bankruptcy.  Hang onto your $$$$.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com/statute-of-limitation.html

Write Your Answer

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
What is the sum of 3 and 0


Inter Next Technologies, Inc., Internet Marketing Services, Reno, NV


Page loaded in 0.178 seconds.